Celgene Corporation CELG reported first-quarter 2016 earnings of $1.18 per share (including share-based compensation expense), beating the Zacks Consensus Estimate of $1.05 by a wide margin. The company had reported earnings of 91 cents per share in the year-ago period. Excluding share-based compensation expense, Celgene’s earnings surged 23% year over year to $1.32 per share in the reported quarter. Total revenues shot up 21% to $2.51 billion in the first quarter of 2016. Revenues were boosted by the consistently impressive performance of the company’s key growth driver, Revlimid. However, revenues were slightly below the Zacks Consensus Estimate of $2.58 billion.Quarter in DetailsNet product sales climbed 21.4% year over year to $2.49 billion, including a 2% negative impact from currency movement.Net sales of Revlimid came in at $1.6 billion, reflecting a year-over-year increase of 17.2%. The drug did well in both the U.S. (up 22.9%) and international markets (up 8.5%). Growth in the reported quarter was driven mainly by increased market share in the newly diagnosed multiple myeloma indication and increased duration of therapy.Net sales of another cancer drug, Abraxane, increased 0.7% year over year to $225 million. Sales of oncology drug, Pomalyst/Imnovid, came in at $274 million, up 38%. Newly launched Otezla reported sales of $195.6 million in the reported quarter, up 6.9% sequentially, benefiting from market share gains in the U.S. and Europe. All other product sales (inclusive of Istodax, Thalomid, Vidaza, and an authorized generic version of Vidaza in the U.S.) came in at $226 million in the first quarter, down 1.7%. Adjusted research and development expenses increased 37.1% to $591 million due to increased investment in the pipeline. Adjusted selling, general and administrative expenses climbed 1.1% to $468 million. 2016 Outlook Updated Celgene updated its outlook for 2016. The company now anticipates earnings in the range of $5.60–$5.70 per share (old guidance: $5.50–$5.70 per share). The Zacks Consensus Estimate for earnings is $4.86 per share. While net product sales are now expected in the range of $10.75–$11 billion (old guidance: $10.5–$11 billion), Revlimid sales are anticipated to be approximately $6.7 billion (old guidance: $6.6–$6.7 billion). While Pomalyst/Imnovid and Otezla are still expected to generate sales greater than $1 billion, Abraxane sales are now expected in the range of $950 million to $1 billion (previous guidance: greater than $1 billion). 2017 Outlook Updated and 2020 On Track For 2017, Celgene now expects earnings in the range of $6.75–$7.00 per share versus the previous target of $7.25. The Zacks Consensus Estimate for earnings is $6.57 per share. Net product sales are now expected in the range of $12.7–$13 billion (old guidance: $13 billion to $14 billion). While Revlimid sales are expected to be approximately $8 billion versus the previous target of $7 billion, Abraxane sales are expected to be approximately $1 billion versus the previous range of $1.5 billion to $2 billion. Celgene’s target for 2020 remains on track. While the company expects earnings per share to exceed $13.00, net product sales are expected to cross $21 billion. Our Take Celgene’s first-quarter 2016 results were mixed with the company beating on earnings by a wide margin but missing on revenues. Revlimid continued to deliver in the first quarter of 2016 as well. Newly launched Otezla also looks promising. The company’s updated outlook for 2016 is also encouraging. Meanwhile, the company continues to progress with its label expansion efforts and pipeline development. Celgene is a Zacks Rank #2 (Buy) stock. Other favorably ranked stocks in the health care sector include Aegerion Pharmaceuticals, Inc. AEGR, Anika Therapeutics Inc. ANIK and Emergent BioSolutions, Inc. EBS, each sporting a Zacks Rank #1 (Strong Buy). Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report CELGENE CORP (CELG): Free Stock Analysis Report ANIKA THERAPEUT (ANIK): Free Stock Analysis Report AEGERION PHARMA (AEGR): Free Stock Analysis Report EMERGENT BIOSOL (EBS): Free Stock Analysis Report To read this article on Zacks.com click here.