Mallinckrodt Q2 Profit Down; Backs 2017 Adj. EPS View

(RTTNews) - Mallinckrodt plc (MNK) reported that its net income for the second-quarter dropped to $62.8 million or $0.64 per share from $199.3 million or $1.82 per share last year.

GAAP earnings per share results from continuing operations were $0.72 in the second quarter compared with $1.62 in the prior year. The reduction in earnings per share from continuing operations reflects continued weakness in the Specialty Generics business impacting both net sales and gross margin, partially offset by $6.6 million of gain in other income related to debt repurchases.

Adjusted earnings per share were $1.85 versus $2.03 last year. Analysts polled by Thomson Reuters expected the company to report earnings of $1.73 per share for the quarter. Analysts' estimates typically exclude special items.

Net sales were $824.5 million in the second quarter, down 4.9%, or 4.6% on a constant-currency basis. GAAP gross profit was $416.1 million with gross profit as a percentage of net sales of 50.5%, compared with 56.4%, impacted by continued pricing pressure within the Specialty Generics segment. Analysts expected revenue of $829.56 million for the quarter.

The company reiterated its adjusted diluted earnings per share guidance of $7.40 to $8.00 for fiscal 2017. Analysts expect annual earnings of $7.52 per share.