Shire Earnings: Here’s Why Investors are Buying Shares Now

Shire plc (NASDAQ:SHPG) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 4.98%.

Shire plc Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 6.55% to $1.79 in the quarter versus EPS of $1.68 in the year-earlier quarter.

Revenue: Rose 5.56% to $1.28 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Shire plc reported adjusted EPS income of $1.79 per share. By that measure, the company beat the mean analyst estimate of $1.64. It beat the average revenue estimate of $1.22 billion.

Quoting Management: Flemming Ornskov, M.D., Chief Executive Officer, commented: “We are pleased with our Q2 results, have made good progress and have returned to higher growth. We’re successfully executing our strategy, which is to grow by focusing on innovation-driven specialty products through both R&D and M&A. We’ve sharpened our focus on commercial excellence and we’re enhancing our pipeline productivity. Our late Phase 3 projects lifitegrast and LDX for BED are progressing well and are programs in which we have increasing confidence. Our strategy has been designed to deliver further enhanced growth. We anticipate delivering full year double digit Non GAAP earnings growth in 2013 and are confident in our ability to grow operating margins going forward.”

Key Stats (on next page)…

Revenue increased 9.73% from $1.16 billion in the previous quarter. EPS increased 9.82% from $1.63 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 $1.67 to a profit $1.60. For the current year, the average estimate is a profit of $6.66, 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)

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