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Shares of generic drugmaker Akorn ( AKRX ) soared Tuesday morning after the company released preliminary 2015 financials and 2016 guidance — its first financial report in over a year. Last spring, the formerly top-rated Akorn discovered material weaknesses in its accounting that led it to say that it would have to restate its 2014 results. It spent so long investigating and fixing its problems that it had to get an extension from the SEC to avoid delisting last year. It’s pledged to file all necessary financial reports by May 9. On Tuesday, it issued its unaudited report as well as 2016 guidance. Akorn said that it posted $985 million in sales last year, about $14 million above analysts’ consensus, according to Thomson Reuters. Earnings excluding one-time items were $1.93, a penny below consensus. Akorn still hasn’t officially restated 2014 earnings, so it didn’t provide year-over-year comparisons, but the company said that it expects $35 million to be taken off both revenue and income. It had previously reported earnings of $1.16 a share on $654 million in revenue. The company also issued full-year guidance, though it was below expectations. Akorn said that revenue should be about $1.06 billion to $1.08 billion, with EPS of $2.10 to $2.20. The latest consensus called for $1.08 billion and $2.25, respectively. Nonetheless, Akorn stock was up 36%, above 25. On Friday, shares hit their lowest point since August 2013, below 18. Bad news was already priced into the stock, Guggenheim analyst Louise Chen said in a research note. “(The 2016) numbers include no new launches, and ’15 included $0.07 in competitive pricing costs,” Chen wrote. “New launches and no incremental competition for ephedrine sulfate and embutal could drive upside to Akorn’s ’16 guidance.” Akorn held a highest-possible IBD EPS Rank of 99 by its last official earnings report, and the new numbers make it look likely to retain a high ranking despite its problems. The company focuses on generic drugs in ophthalmics, creams and other formulations more shielded from competition than the standard pills. It was also seen as a possible acquisition target before its current troubles erupted. Image provided by Shutterstock . Scalper1 News
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