Salix Q4 Results Top Estimates

(RTTNews) - Salix Pharmaceuticals (SLXP) Thursday reported increased profit and revenue for the fourth quarter that topped Wall Street estimates. Further, the company guided full year above Street expectations. The stock advanced nearly 5 percent in the extended trade. Net income for the quarter surged to $52.26 million or $0.76 per share from $17.62 million or $0.28 per share in the comparable quarter last year.

Adjusted earnings for the quarter was $1.06 per share, while it totaled $0.81 per share in the prior year quarter. On average, 13 analysts polled by Thomson Reuters expected the company to earn $0.93 per share for the quarter. Analysts' estimates typically exclude special items.

Total product revenues increased 30 percent to $257.61 million from $198.17 million last year. Analysts expected revenues of $247.29 million.

Xifaxan, indicated for hepatic encephalopathy, saw sales improve to $175.8 million from $147.0 million in the prior year.

Looking ahead to the first quarter, the company expects adjusted earnings of $0.85 per share and total product revenue of $373 million. Analysts currently expect first-quarter earnings of $1.35 per share on revenue of $372.21 million.

For fiscal 2014, the company estimates adjusted earnings of $6.46 per share and total product revenue of $1.6 billion. Analysts currently expect fiscal 2014 earnings of $5.98 per share on revenue of $1.59 billion.

Carolyn Logan, CEO, said, "We enter 2014 with strong momentum in our core XIFAXAN franchise and greater resources to pursue expanded opportunities for all of our currently marketed products. We also anticipate progress during 2014 in the development of additional label expansions for our current products as well as new product candidates.''

The stock closed up 1.4 percent on Thursday at $109.84 and gained 4.7 percent in the extended trade.