Genentech 2Q profit rises 41 percent:

In a pattern now long familiar to investors in one of the world’s largest biotechnology companies, Genentech Inc. again reported a surge in profit, crediting its best-selling cancer drug for its continued hot streak.

Yet the stock is down on the news. As I noted in my earnings preview:

Genentech (DNA - Annual Report), which I own in my personal account, reports on Wednesday. They should beat the $0.71 consensus number, but the cancer treatment approvals aren’t coming as fast and furiously as they used to.

But the story is far from over. The good news: During the quarter, the company began eight Phase III clinical trials. Those studies include Lucentis as a possible treatment for eye problems caused by diabetes and Avastin for a specific form of lung cancer and as a second-line treatment for colon cancer.

Hopefully some of those will set the approval train rolling again.

Disclosure: Author is long Genentech at time of publication.

The Economic Calendar looks pretty dull next week, with only Friday’s PPI report likely to get us excited. Look for our usual industry pricing power report.

Looking less dull is the earnings calendar, as earnings season officially begins.

• Research in Motion (RIMM) reports on Tuesday. Consensus is calling for $0.99 EPS on $933 million in sales, and guidance of $1.04 on $994 million for next quarter. We’re taking the under.
• Genentech (DNA - Annual Report also reports on Tuesday. Consensus wants $0.67 EPS on $2.75 billion in sales and guidance of $0.71 on $2.9 billion for next quarter.
• Lam Research (LRCX) reports on Thursday. Consensus expects this quarter and next to bring in about $1.06 on $645 million in sales. We are expecting order flow to disappoint.
• Infosys (INFY) reports on Friday.  Consensus wants $0.40 on $865 million in revenues, and guidance for $0.40 on $920 million. They will make the numbers, but investors will listen closely to the update on visas and employee retention.

William Trent currently owns put options against the shares of Lam Research (LRCX).