By RTT News, October 24, 2013, 09:29:00 AM EDT
(RTTNews.com) - Shire Plc. (SHPG, SHP.L) reported that its third-quarter net income increased to $278.2 million from $227.2 million in the same quarter last year. On a US GAAP basis, earnings per ADS increased 23% to $1.46 from last year's $1.19, primarily due to higher US GAAP operating income.
Non GAAP earnings per American Depository Share increased 30% to $1.77 from the prior year's $1.36, primarily due to higher Non GAAP operating income. Analysts polled by Thomson Reuters expected the company to report earnings of $1.64 per share for the quarter. Analysts' estimates typically exclude special items.
Operating income was up 25% to $341 million from the prior year's $273 million, a lower rate of increase than on a Non GAAP basis as third-quarter 2013 included higher acquisition and integration costs as compared to third-quarter 2012 and reorganization costs of $14 million not incurred in third-quarter 2012.
Total revenues were up 12% to $1.237 billion from last year's $1.100 billion, as the growth in product sales was partially offset by lower royalties. Ten analysts estimated revenues of $1.23 billion for the quarter.
The company raised its 2013 Non GAAP earnings guidance to mid-to-high teens growth from the previous estimate of double digit growth, as it continues to see operating costs benefit from its reorganization efforts. Analysts expect the company to report earnings of $6.80 per share.
The company anticipates a similar level of product sales growth in the fourth quarter as it delivered in the third quarter, and continues to expect full year product sales growth in the mid-to-high single digits.
It continues to expect royalties and other revenues to be 35-40% lower than 2012.
Looking forward, the company anticipates continuing operating leverage in 2014 and 2015, from reduced combined Non GAAP R&D and SG&A. it expects this to be around $250 million lower than current consensus in 2014 and $300 million lower than current consensus in 2015.
In the pre-market trade, SHPG is currently trading at $130.80, up $8.40 or 6.86%.
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