Boston, MA 08/06/2014 (wallstreetpr) – Zacks Consensus looked quite confident at the time it expected $3.37 per share earnings for Actavis plc (NYSE:ACT), but it was proved wrong. ACT posted eye-popping earnings figure of $3.42 per share which was 70% higher than the last year’s figure.
Details of financial performance:
According to reports, the total revenue for the quarter was $2.67 billion which was more than the Zacks Consensus Estimate of $2.56 billion. ACT grew at an excellent rate of 34% in terms of revenues over the past one year.
Trigger behind the top-notched performance:
According to market experts, the main reason behind this excellent performance is but the acquisition deal with Warner Chilcott. Since the time ACT acquired Warner Chilcott, its product range became wider than ever, therefore it included more products in its offering which resulted in better financial performance.
What are the revenue prospects:
ACT has two segments i.e. Anda Distribution and Actavis Pharma. Anda Distribution generates revenue through sales of third party products while Actavis Pharma generates revenue through over-the-counter products, branded, generic and branded generic products.
The total sales of Actavis Pharma in Q3 2014 was $2.24 billion which was 30.7% more than the last year’s sales. At the same time Anda Distribution generated net revenue worth of $427 million, 54.8% more than the last year.
Outlook for the second half of 2014 and 2015:
On the basis of current and past performance, ACT expects to earn around $6.25 – $6.50 per share in the second half of 2014. The total revenue is expected to touch $7 billion mark. If you talk about the entire year, then ACT is expected to earn around $13.02 and $13.32 per share which is slightly less than Zacks Consensus Estimate of $13.67 per share.
Actavis plc (NYSE:ACT) expects to generate total revenues of $15 billion in 2015. Per share earnings during the same time are expected to be around $15.60-$16.80 per share. The Zacks Consensus Estimate for revenues and earnings is $14.2 billion and $16.72 per share.
