Actavis Plc's third-quarter earnings fell nearly 15 percent as costs rose, but the drugmaker's stock jumped after the company also hiked its forecast for this year and offered some insight into 2014.
The Irish drugmaker said Tuesday it expects to finish 2013 strong and now predicts adjusted 2013 earnings to range between $9.26 and $9.39 per share after forecasting annual EPS of between $8.15 and $8.50 in July. The new outlook counts contributions from Warner Chilcott Plc, a fellow drugmaker that Actavis acquired in an $8.5 billion deal that closed Oct. 1.
For next year, it expects adjusted earnings per share to range between $12.25 and $13.
Analysts expect, on average, earnings of $8.34 per share this year and $12.63 per share in 2014, according to FactSet.
In the third quarter, Actavis earned $65.6 million, or 49 cents per share. That compares to $76.7 million, or 60 cents per share, in last year's quarter.
Adjusted earnings totaled $2.09 per share in the most recent quarter.
Revenue jumped 57 percent to $2.01 billion compared to last year, before the company finished an acquisition that increased its size.
Analysts expected, on average, earnings of $2.09 per share on $2.03 billion in revenue.
Actavis was formed in a $5.6 billion tie-up between Watson Pharmaceuticals and Actavis that closed last November. After Watson bought Actavis Group it changed its name to Actavis Inc. Then in May, the company agreed to buy Warner Chilcott.
Aside from the acquisition, new product launches that included a generic version of the Lidoderm pain patch also helped the company's revenue. But total operating expenses climbed 55 percent to $1.86 billion in the third quarter.
Company shares climbed 5.3 percent, or $7.79, to $153.65 in afternoon trading, while the Standard & Poor's 500 index rose slightly. Earlier shares hit an all-time high of $154.70.
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