Actavis Turns To Profit In Q1, Results Beat View

(RTTNews) - Specialty pharmaceutical company Actavis plc (ACT) on Wednesday reported a turnaround to profit in the first quarter, as results were boosted by contributions from the company's recent acquisition.

Both revenue and adjusted earnings for the quarter beat analysts' estimates. Looking ahead to the second quarter, the company forecast adjusted earnings to be slightly lower than the preceding first quarter.

Net income attributable to the company's common shareholders for the first quarter was $96.5 million or $0.55 per share, compared to net loss of $102.8 million or $0.79 per share in the year-ago period.

The latest quarter's results include the contribution from the Warner Chilcott acquisition. In October 2013, Actavis completed the acquisition of Warner Chilcott plc, a provider of branded treatments for urology and gastroenterology conditions.

Actavis, the world's second-largest generic drug maker, is also in the process of acquiring rival Forest Laboratories, Inc. (FRX) for about $25 billion in cash and stock.

On an adjusted basis, earnings per share for the latest quarter were $3.49, compared to $1.99 per share in the same period last year. On average, 15 analysts polled by Thomson Reuters expected the company to report earnings of $3.24 per share for the quarter. Analysts' estimates typically exclude special items.

Net revenue for the quarter grew 40 percent to $2.66 billion from $1.90 billion in the year-ago period. Analysts had a consensus revenue estimate of $2.59 billion.

Beginning with the first quarter of 2014, Actavis is presenting its operating results in two revenue producing segments - Actavis Pharma and Anda Distribution.

The Actavis Pharma segment includes all branded, branded generic, generic and over-the-counter products. The Anda Distribution segment includes revenue from the distribution of third-party products primarily to independent pharmacies, pharmacy chains, pharmacy buying groups and physicians' offices.

Actavis Pharma net revenue for the quarter increased 36 percent from the year-ago period to $2.26 billion, reflecting the acquisition of Warner Chilcott, new product launches, and higher international net revenue.

In Anda Distribution segment, net revenue surged 69 percent to $390.2 million, as a result of volume increases for products within the Anda portfolio.

Looking ahead to the second quarter, Actavis forecasts adjusted earnings to be slightly lower than the preceding first quarter 2014. Street expects the company to earn $3.26 per share for the quarter.

The company also said that in accordance with applicable Irish and European rules and regulations, its standalone forecast provided at its investor day on January 31, 2014 should be considered withdrawn.

As a result of the recently announced acquisition of Forest Laboratories, Actavis plans to provide an updated combined financial forecast for the year at or shortly following the close of the acquisition that is anticipated to occur mid-year 2014.

ACT is currently trading at $202.96, up $5.15 or 2.61 percent on a volume of 1.73 million shares.