Cephalon Earnings Cheat Sheet: Margin Expansion Driven by Falling Costs, Profit Rises
Lower costs helped S&P 500 (NYSE:SPY) component Cephalon, Inc. (NASDAQ:CEPH) pull in a higher profit in the second quarter. Cephalon, Inc. is an international biopharmaceutical company that develops products to address central nervous system, pain, oncology and inflammatory disease.
Cephalon Earnings Cheat Sheet for the Second Quarter
Results: Net income for Cephalon, Inc. rose to $118.2 million ($1.34 per share) vs. $89.1 million ($1.11 per share) in the same quarter a year earlier. This marks a rise of 32.7% from the year earlier quarter.
Revenue: Rose 1.6% to $738.3 million from the year earlier quarter.
Actual vs. Wall St. Expectations: CEPH reported adjusted net income of $1.86 per share. By that measure, the company fell short of mean estimate of $2.08 per share. It fell short of the average revenue estimate of $764.4 million.
Revenue has risen the past four quarters. Revenue increased 24.9% to $745.1 million in the first quarter. The figure rose 34% in the fourth quarter of the last fiscal year from the year earlier and climbed 30.5% in the third quarter of the last fiscal year from the year-ago quarter.
The company has now fallen short of estimates in the last two quarters. In the first quarter, it missed expectations by 6 cents with net income of $1.98 versus a mean estimate of net income of $2.04 per share.
The company has now seen net income rise in two straight quarters. In the first quarter, net income rose 90.9% from the year earlier.
Competitors to Watch: Watson Pharmaceuticals, Inc. (NYSE:WPI), Valeant Pharmaceuticals Int (NYSE:VRX), Genzyme Corporation (NASDAQ:GENZ), Johnson & Johnson (NYSE:JNJ), Jazz Pharmaceuticals, Inc. (NASDAQ:JAZZ), ChemGenex Pharmaceuticals Ltd. (CXSPY), Teva Pharmaceutical Industries Ltd (NASDAQ:TEVA), Bristol Myers Squibb Co. (NYSE:BMY), Abbott Laboratories (NYSE:ABT), and Biogen Idec Inc. (NASDAQ:BIIB).
(Source: Xignite Financials)