) third quarter 2013 earnings of $2.09 per share were a penny
short of the Zacks Consensus Estimate but up 55% from the
Revenues for the reported quarter came in at approximately
$2,013 million, up 56.6% from the year-ago period, but slightly
below the Zacks Consensus Estimate of $2,043 million.
Actavis operates through three segments: Actavis Pharma,
Actavis Specialty Brands and Anda Distribution.
The Actavis Pharma segment posted sales of $1.6 billion, up
69%. Results benefited from the Actavis Group acquisition late
last year. Moreover, revenues were driven by new product launches
including the generic versions of Suboxone sublingual tablets and
Lidoderm. Generic Concerta sales, however, were impacted by the
entry of competition.
International revenues were strong at $609.3 million, up 208%,
reflecting the inclusion of legacy Actavis products.
Actavis has also launched its generic version of Opana ER and
gained FDA approval for its generic version of Lamictal ODT.
Actavis Specialty Brands revenues came in at $153.8 million,
up 27%. Increased contributions from products like Rapaflo,
Crinone and Generess Fe and Oxytrol OTC (sales commenced from the
second quarter of 2013) aided the performance of the segment.
Net revenues from the Anda Distribution segment increased 26%
during the quarter to $307.1 million reflecting higher chain
Raises 2013 Earnings Outlook
With the Warner Chilcott acquisition being completed on Oct 1,
2013, Actavis raised its earnings outlook for 2013. The company
now expects earnings of $9.26 - $9.39 per share. Earlier, the
company had guided towards earnings in the range of $8.15 - $8.50
The Zacks Consensus Estimate of $8.34 is well below the
company's new guidance range and we expect significant upward
revisions in earnings estimates for 2013. Meanwhile, fourth
quarter earnings are expected to be between $2.95 and $3.05 per
diluted share. The Zacks Consensus Estimate of $2.24 is again
below the company's guidance range.
Total revenues are expected to be about $8.6 billion in 2013,
up from the earlier guidance of $8.1 billion. The Zacks Consensus
Estimate for revenues is currently $8.0 billion.
Actavis also provided a preliminary outlook for 2014. Actavis
expects earnings of $12.25 - $13.00 per share in 2014. The Zacks
Consensus Estimate of $12.74 is within the company's guidance
Actavis currently carries a Zacks Rank #2 (Buy). We are
positive on the company's acquisition of Warner Chilcott which
makes strategic and financial sense. The deal, which will be
immediately accretive, will also provide strong operating cash
flow and allow Actavis to de-lever its balance sheet. The tax
rate will also be significantly below earlier levels.
With fewer major patent expiries slated to occur in the next
few years, we are encouraged by Actavis' focus on building its
branded and biosimilars pipeline.
Currently, companies like
AMAG Pharmaceuticals, Inc.
) look well-positioned. While Actelion and AMAG are Zacks Rank #1
(Strong Buy) stocks, Akorn is a Zacks Rank #2 stock.
ACTAVIS PLC (ACT): Free Stock Analysis Report
AKORN INC (AKRX): Free Stock Analysis Report
ACTELION LTD (ALIOF): Get Free Report
AMAG PHARMA INC (AMAG): Free Stock Analysis
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