Exelixis (NASDAQ:EXEL) Shares Up 8.1% After Earnings Beat

Key Points

• Exelixis shares rose 8.1% after the company reported quarterly EPS of $0.94, exceeding the $0.89 consensus estimate, while revenue reached $658.7 million, up 10.2% year over year and above expectations.
• Strong profitability and cash generation continued, with quarterly net income of $218.1 million and operating cash flow of $280 million; CABOMETYX remained the primary growth driver.
• Future upside depends on pipeline execution. The FDA set a March 3, 2027 decision date for zanzalintinib, but analysts maintain a consensus “Hold” rating with an average price target of $51.93, well below the recent trading range.

Exelixis, Inc. (NASDAQ:EXEL - Get Free Report)'s stock price rose 8.1% during trading on Friday after the company announced better than expected quarterly earnings. The stock traded as high as $71.37 and last traded at $71.53. 444,332 shares changed hands during mid-day trading, a decline of 83% from the average daily volume of 2,565,904 shares. The stock had previously closed at $66.20.

The biotechnology company reported $0.94 EPS for the quarter, beating the consensus estimate of $0.89 by $0.05. The business had revenue of $658.70 million during the quarter, compared to analysts' expectations of $646.51 million. Exelixis had a return on equity of 42.17% and a net margin of 35.33%. The firm's quarterly revenue was up 10.2% compared to the same quarter last year. During the same quarter in the previous year, the business posted $0.78 EPS.

Key Exelixis News

Here are the key news stories impacting Exelixis this week:

• Positive Sentiment: Q3 earnings and revenue beat expectations. Exelixis reported revenue of $658.7 million, up 10.2% year over year, versus a consensus estimate of approximately $646.5 million. Non-GAAP EPS was $0.94, ahead of the $0.89 estimate and above $0.78 a year earlier. CABOMETYX remained the primary growth and profitability driver. Exelixis Surpasses Q3 Earnings and Revenue Estimates
• Positive Sentiment: Pipeline catalysts are becoming more visible. Exelixis said the FDA has assigned a March 3, 2027 PDUFA date for zanzalintinib, while the company continues advancing “Wave 2” pivotal development plans. A regulatory decision and progress toward additional indications could expand the company’s growth beyond CABOMETYX. Exelixis Zanzalintinib PDUFA and Wave 2 Plans
• Positive Sentiment: Profitability and cash generation remain strong. Third-quarter net income was reported at $218.1 million, operating cash flow reached $280.0 million, and operating profit increased year over year, supporting continued investment in clinical programs. Exelixis Third-Quarter Results and Corporate Updates
• Neutral Sentiment: Investors still face a valuation and execution debate. EXEL’s strong rally has pushed the stock close to its 52-week high, while the median analyst price target cited in recent coverage is $52, below the current trading range. Future performance will depend on successful zanzalintinib development and regulatory execution.
• Negative Sentiment: Recent insider activity has been one-sided. Several executives and directors reportedly sold shares during the past six months, with no insider purchases disclosed. These sales may weigh on sentiment, although they do not necessarily indicate deteriorating fundamentals. Exelixis Q3 Earnings and Insider Activity

Wall Street Analyst Weigh In

EXEL has been the topic of a number of research reports. Weiss Ratings raised shares of Exelixis from a "buy (a-)" rating to a "buy (a)" rating in a research report on Thursday, October 8th. Barclays upped their price target on shares of Exelixis from $45.00 to $49.00 and gave the stock an "equal weight" rating in a research report on Tuesday, July 14th. William Blair reiterated an "outperform" rating on shares of Exelixis in a research report on Friday, September 11th. Royal Bank Of Canada lifted their price target on shares of Exelixis from $45.00 to $51.00 and gave the stock a "sector perform" rating in a research report on Friday, October 9th. Finally, Wells Fargo & Company upped their target price on shares of Exelixis from $40.00 to $49.00 and gave the stock an "equal weight" rating in a research note on Monday, July 13th. One research analyst has rated the stock with a Strong Buy rating, six have given a Buy rating, twelve have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, the company currently has a consensus rating of "Hold" and an average price target of $51.93.

Insiders Place Their Bets

In related news, Director Mary Beckerle sold 9,812 shares of the company's stock in a transaction on Monday, August 10th. The stock was sold at an average price of $53.66, for a total transaction of $526,511.92. Following the completion of the sale, the director directly owned 16,079 shares in the company, valued at $862,799.14. This represents a 37.90% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 2.60% of the stock is owned by insiders.

Hedge Funds Weigh In On Exelixis

A number of hedge funds have recently bought and sold shares of the company. Cassaday & Co Wealth Management LLC acquired a new position in shares of Exelixis during the 1st quarter valued at $27,000. Western Wealth Management LLC purchased a new position in shares of Exelixis during the first quarter worth about $29,000. Mather Group LLC. raised its holdings in shares of Exelixis by 124.6% during the 3rd quarter. Mather Group LLC. now owns 757 shares of the biotechnology company's stock valued at $44,000 after buying an additional 420 shares in the last quarter. Mitsubishi UFJ Asset Management Co. Ltd. purchased a new position in Exelixis in the 2nd quarter worth approximately $46,000. Finally, Northwestern Mutual Wealth Management Co. bought a new stake in Exelixis in the second quarter valued at $57,000. Institutional investors own 85.27% of the company's stock.

Exelixis Price Performance

The company has a 50 day moving average of $59.07 and a two-hundred day moving average of $50.79. The company has a market capitalization of $17.45 billion, a PE ratio of 22.26, a PEG ratio of 1.86 and a beta of 0.47.

About Exelixis

Exelixis, Inc is a biopharmaceutical company focused on discovering, developing, and commercializing medicines for cancer and other serious diseases. The company's research programs center primarily on targeted therapies, including treatments designed to inhibit signaling pathways involved in tumor growth and progression.

Exelixis' lead product is CABOMETYX (cabozantinib), an oral medicine approved in the United States for certain patients with renal cell carcinoma, hepatocellular carcinoma, and differentiated thyroid cancer.

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