Exelixis (EXEL – Free Report) is a $6 billion biotechnology company focused on cancer R&D and the producer of cabozantinib (sold under the brand names Cabometyx and Cometriq), a treatment approved by the FDA for several indications: medullary thyroid cancer, a second line treatment for renal cell carcinoma (RCC), and clinical activity in several other types of metastatic cancer.

Unique among small biotech companies, EXEL is a profitable mid-cap cancer fighter with projected 58% revenue growth and 68% EPS growth this year. The stock just became a Zacks #1 Rank this week after a very strong Q1 of big top and bottom line surprises reported on 5/2.

Here's how Oppenheimer analysts summed up the quarter and outlook, reiterating their $40 PT…

Cabometyx sales of $128.9 million were 34.5% higher than our estimated $95.9 million and 20.6% higher than consensus of $106.9 million. Based on Cabometyx demand increases and the strong start to the frontline RCC launch, we are increasing our sales estimate for 2018 by 16.8% to $510.5 million. Our outlook for 2019 – 2022 revenue is basically unchanged. While being partially offset by a small increase in estimated expenses, the sales estimate increase and milestone payments are leading us to raise our estimated 2018 EPS to $0.74 from our prior $0.37.

And Oppy is still $200 million under consensus for projected 2018 sales of $716M. I almost wonder if they made a typo given their high Street PT of $40, which was shared by SunTrust until today (more on this coming up). Here's a snapshot of how analysts got caught off-guard about the earnings power of EXEL…

William Blair analysts not only reiterated their Outperform rating after the report, they called EXEL their Top Biotech Pick of 2018. They were very impressed with the big sales and profit beats. Here was part of a research note from April (before the report) that details their long-term thesis (courtesy of TheFly.com)…