Actavis Q3 Results Beat View, Lifts 2014 Outlook, CFO Joyce To Retire

(RTTNews) - Specialty pharmaceutical company Actavis plc (ACT) on Wednesday reported a loss for the third quarter as higher revenues resulting from the company's recent acquisitions were offset by a surge in expenses.

However, both revenue and adjusted earnings for the quarter beat analysts' estimates. Looking ahead to fiscal 2014, the company raised its earnings outlook for fiscal 2014.

In a separate statement, Actavis said that Chief Financial Officer Todd Joyce will retire from the company in early 2015.

Net loss attributable to the company's common shareholders for the third quarter was $1.04 billion or $3.95 per share, compared to net income of $65.6 million or $0.49 per share in the year-ago period.

The latest quarter's results include contributions from the company's $25 billion acquisition of rival Forest Laboratories Inc., which closed on July 1, 2014. In October 2013, Actavis completed the acquisition of Warner Chilcott plc, a provider of branded treatments for urology and gastroenterology conditions.

On an adjusted basis, earnings for the latest quarter were $3.19 per share, compared to $2.09 per share in the same period last year. On average, 21 analysts polled by Thomson Reuters expected the company to report earnings of $3.10 per share for the quarter. Analysts' estimates typically exclude special items.

Net revenue for the quarter grew 83 percent to $3.68 billion from $2.01 billion in the year-ago period. Analysts had a consensus revenue estimate of $3.63 billion for the quarter.

North American Brands revenue for the quarter surged more than ten-fold from last year to $1.62 billion, driven by the acquisitions of Warner Chilcott and Forest, which includes strong sales of key promoted products including Namenda products, Bystolic, Linzess, Lo Loestrin Fe, Estrace Cream, Daliresp and Tudorza.

North American Generics revenue for the quarter was $979.9 million, reflecting strong base business performance partially offset by additional generic competition of certain key products including the company's generic version of Lidoderm and authorized generic version of Concerta.

International revenue grew 15 percent from the year-ago period to $660.7 million, as a result of the acquisitions of Warner Chilcott as well as Forest and strong growth in key markets including the UK and Russia/CIS.

Anda Distribution segment revenues surged 38 percent to $423.2 million, as a result of volume increases for products within the Anda portfolio and new launches.

The company's total operating expenses rose to $4.74 billion from $1.86 billion in the same period last year, and includes in-process research and developments impairments as well as higher amortization expneses.

Looking ahead to fiscal 2014, Actavis now forecasts adjusted earnings in a range of $13.51 to $13.61 per share, compared to the prior range of $13.02 to $13.32 per share. Analysts expect the company to report earnings of $13.29 per share for the year.

The company expects to provide an updated full-year 2015 financial outlook early next year.

Separately, Actavis announced that CFO Todd Joyce will retire from the company in early 2015. To ensure a smooth transition, Actavis said Joyce will continue as CFO until a successor is named. The company said it has engaged a leading executive search firm to identify a successor.

Joyce has served as CFO of the company since October 2009. He joined then Watson Pharmaceuticals in 1997 as Corporate Controller, and was named Vice President, Corporate Controller and Treasurer in 2001.

ACT is currently trading at $248.65, up $3.32 or 1.36 percent on a volume of 513,414 shares.