Actavis plc (ACT) 4Q Results Sweep Analysts’ Estimations

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It was a day that belonged to Actavis plc (NYSE:ACT). The company delivered earnings, as well as, revenue for the fourth quarter that crushed all estimations of the Street analysts’. Aside from the results, the company indicated that it would adopt the corporate name of “Allergan” by uniting global brand portfolio after the successful acquisition of Allergan, Inc. (NYSE:AGN).

4Q Results

Actavis plc (NYSE:ACT) reported a net loss of $732.9 million or a loss of $2.76 per share in the fourth quarter. It was wider than a net loss of $148.4 million or a loss of 86 cents a share in the prior year quarter. On an adjusted basis, earnings would have increased 23% to $3.91 a share from $3.17 a share in the year-ago quarter. On average, Wall Street analysts’ expected the company to deliver earnings of $3.67 a share.

The company’s top line advanced 44% to $4.01 billion from $2.78 billion in the previous year quarter. Street estimated revenue of $3.84 billion. Total North American Brands revenue more than doubled to $1.83 billion from $635.1 million in the same quarter last year.

Actavis plc (NYSE:ACT) said that its adjusted EBITDA jumped 80% to $1.5 billion in the December quarter. Its cash flow from operations was $812 million during the fourth quarter. Its cash and marketable securities remained $251 million at the end of the fourth quarter.

Full Year Results

The company suffered a loss of $1.63 billion or $7.42 loss per share in 2014 versus a loss of $750.4 million or a loss of $5.27 a share in the previous year. On an adjusted basis, its earnings would have jumped 47% to $13.98 a share from $9.50 a share in the prior year.

The company’s adjusted top line jumped 48% to $12.8 billion from $8.7 billion while GAAP revenues climbed 51% to $13.1 billion from $8.7 billion in 2013.

Outlook

Moving ahead, Actavis expects to deliver adjusted earnings of $16.30 – $17.30 a share in 2015 and generate revenue of about $15 billion. Street analysts’ predict the company to earn $16.63 a share and $15.60 billion revenue.

Actavis plc (NYSE:ACT) President and CEO, Brent Saunders, said that the pending merger between the company and Allergan would establish a fresh breed of company, which could be a leader in Growth Pharma. He said that adopting the name of Allergan would ensure that its corporate identity reflected the evolution of the pharmaceutical industry.

Viraj Shah

Viraj Shah has completed M.Com (Finance) and is currently pursuing his CFP. He tracks US markets along with other global markets like India very closely. He is very passionate about stocks, real estate, and technology. He also believes that money can always be made in the market.

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