Ireland-based MallinckrodtMNK focuses on developing treatments for autoimmune and rare diseases (including neurology, rheumatology, nephrology and pulmonology) as well as therapies for pain management.
The company develops, manufactures, markets and distributes both branded and specialty generic pharmaceuticals. During the first quarter of 2015, the company changed its reportable segments and since then reports in three segments: Specialty Brands, Specialty Generics and Nuclear Imaging. The company sold its contrast media and delivery systems business to Guerbet S.A. in Nov 2015.
Mallinckrodt acquired Ikaria Inc. in 2015 to strengthen its business in the hospital market. With the addition of Inomax to its portfolio, Mallinckrodt gained access to the market for neonatal critical care, which helped it to diversify its portfolio in the Specialty Brands segment. The company also acquired Therakos Inc. in Sep 2015 to widen its presence from multimodal surgical pain management and critical care respiratory therapies in neonatal intensive care units to include innovative immunotherapy therapies.
Mallinckrodt has an excellent earnings track record with the company delivering positive earnings surprises in each of the last four quarters with a positive average earnings surprise of 12.4%. Estimate revisions for Mallinckrodt for fiscal 2016 have been static in the last thirty days.
MALLINCKRODT PL Price and EPS Surprise
Currently, Mallinckrodt has a Zacks Rank #2 (Buy), but that could definitely change following the company's earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:
Earnings : Mallinckrodt beat on earnings by a wide margin. Our consensus called for EPS of $2.01, and the company reported EPS of $2.20.
Revenue : Revenues also surpassed expectations. Mallinckrodt posted revenues of $970.6 million, compared to our consensus estimate of $929 million.
Key Stats : Revenue growth was primarily driven by solid volume growth of H.P. Acthar Gel, strong performance of Inomax and Therakos immunotherapy and incremental volume growth for Ofirmev. However, sales of from the specialty generics segment were down.
Guidance: The company expects earnings to come in above the high end of the earlier projected range of $8.15 - $8.50 in fiscal 2016 (ending September 30, 2016). In May 2016, Mallinckrodt announced that its board of directors has approved a change in the company's fiscal year end to the last Friday in December from the last Friday in September. This decision will result in a transition period from Oct 1 to Dec 30, 2016. For 2016, Mallinckrodt expects earnings in the range of $8.50 to $8.80 per share.
Check back later for our full write up on this Mallinckrodt earnings report later!
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