Actavis Quarterly Earnings Beat Estimates as Sales RiseDanielle Burger
Actavis Plc, which bought Allergan Inc. in the drug industry’s largest deal of 2014, beat analysts’ earnings estimates as sales gained 59 percent.
First-quarter profit excluding certain items was $4.30 a share, Actavis said in a statement Monday. Analysts had forecast $3.92 on average, according to data compiled by Bloomberg. Revenue rose to $4.23 billion, compared with the $4.1 billion average of analyst estimates.
The company’s shares rose 3 percent to $301.74 at the close in New York, and have gained 17 percent this year.
Actavis completed its $66 billion purchase of Allergan on March 17, creating one of the world’s biggest drugmakers. While the company got its start in generic drugs, after more than a dozen acquisitions in the past five years Actavis has been growing its share of branded medicine as well. The drugmaker acquired Forest Laboratories Inc. in July 2014 after making a $21.8 billion deal, gaining its brand-name treatments for gastrointestinal and central nervous system disorders.
Actavis forecast full-year adjusted earnings per share of $17 to $18.50, including Allergan’s contribution.
Actavis plans to take the name Allergan Plc following a shareholder meeting in June. The newly named company will remain based in Dublin with its operational headquarters in Parsippany, New Jersey.
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