Actavis Pharmaceuticals released first quarter results prior
to the market open on May 2nd 2013. Net revenue increased 24.0% from
$1.52B to $1.9B when compared to the same quarter last year, nearly missing
analyst estimates of $1.96B. The three main segments of revenue for Actavis are
the Actavis Pharma, Actavis Specialty Brands, and Anda Distribution. Actavis
Pharma, driven mostly by International sales, increased 37.0%. After the
inclusion of legacy Actavis, international sales increased 254.0%. Actavis
Specialty Brands increased 19.0% to $130.7MM, mainly from new product lines. Anda
Distribution revenues decreased 23.0%, due largely to new third party product
launches.
EPS on a non-GAAP basis increased 21.0% to $1.99, beating
analyst estimates of $1.87. After posting tremendous results, management
reevaluated their operations and increased guidance for the full year. EPS for
the year increased $0.40 on both the high and low end from $7.70 - $8.10 to
$8.10 - $8.50. Revenue was kept consistent at $8.1B.
Investors reacted positively to the EPS beat and raised guidance;
they opened 2.6% at $107.06 from the previous close of $104.39. It eventually
cooled down and ended the day with a total gain of 2.0% at $106.49. We reiterate
our BUY rating as talks of a Valeant merger and positive earnings outlook
should help push the company higher as time passes.
No comments:
Post a Comment