Actavis Earnings: Everything You Must Know Now

Actavis (NYSE:ACT) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.

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Actavis Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 21.34% to $1.99 in the quarter versus EPS of $1.64 in the year-earlier quarter.

Revenue: Rose 24.35% to $1.9 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Actavis reported adjusted EPS income of $1.99 per share. By that measure, the company beat the mean analyst estimate of $1.86. It missed the average revenue estimate of $1.97 billion.

Quoting Management: “The new Actavis is off to a strong start in 2013, and as a result, we are increasing our 2013 forecast based on the strong performance and execution against our objectives to date,” said Paul Bisaro, President and CEO.

Key Stats (on next page)…

Revenue increased 8.3% from $1.75 billion in the previous quarter. EPS increased 25.16% from $1.59 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $1.93 to a profit $1.94. For the current year, the average estimate has moved up from a profit of $8.00 to a profit of $8.09 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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