Akorn Earnings: Here’s Why Investors Don’t Like These Results

Akorn Inc. (NASDAQ:AKRX) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 7.59%.

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Akorn Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 23.08% to $0.1 in the quarter versus EPS of $0.13 in the year-earlier quarter.

Revenue: Rose 42.88% to $73.9 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Akorn Inc. reported adjusted EPS income of $0.1 per share. By that measure, the company missed the mean analyst estimate of $0.14. It missed the average revenue estimate of $74.07 million.

Quoting Management: Raj Rai, Chief Executive Officer, commented, “We are pleased with our first quarter results although we were behind in the launches of certain products that were approved late last year due to capacity constraints with our contract manufacturing partners as well as market challenges. We expect resolution sometime in the second half of this year. We are also excited about the establishment of our new R&D center in Vernon Hills, Illinois. The new center, with its added capacities and capabilities, will make it possible for us to file 35 to 40 ANDAs with the USFDA from our US and India facilities starting next year, which is the cornerstone of our long term growth strategy.”

Key Stats (on next page)…

Revenue increased 3.33% from $71.52 million in the previous quarter. EPS decreased 23.08% from $0.13 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.16 to a profit $0.15. For the current year, the average estimate is a profit of $0.62, which is the same with that ninety days ago.

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