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Generic drugmaker Akorn reports 1Q earnings and revenue that beat Street estimates; stock jumps

The specialty generic drugmaker's $0.10 loss in earnings per share (EPS) trumped estimates of a $0.20 loss
drugs
The Illinois-based company earned $166 million in revenue, beating the analysts' estimate of $153.5 million

Shares of Akorn Inc. (NASDAQ:AKRX) on Wednesday jumped more than 25% a day after the company announced first-quarter earnings and revenue that beat analysts’ estimates.

Akorn on Wednesday reported a net loss $0.10 per share when analysts expected a $0.20 loss. The company said it earned $166 million in revenue, down 10% from the prior-year quarter. But revenue beat estimates of $153.5 million. 

The specialty generic drugmaker’s stock recently traded at $4.48 a share, up 26%, on heavy volume.

READ: Akorn shares slip after court rules that Fresenius can cancel its buyout of the generic drugmaker

The Lake Forest, Illinois-based company saw its net loss widen to $82 million, compared to a net loss of $29 million in the year-ago quarter.

The company in a statement cited competition with other drug manufacturers, production delays and declines, and regulatory compliance costs for the drops in revenue and profit. 

Nevertheless, CEO Douglas Boothe said that the “results were stronger than anticipated and benefited from the resumption of full operations, improvement in product availability and strong demand across our diversified lines of business."

Akorn also provided full-year guidance, predicting net revenue in the range of $690 million to $710 million and a net loss ranging from $166 million to $151 million, according to the statement.

The company also plans to spend about $40 million on capital expenditures.

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Newswire
November 01 2011

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