U.S. Markets closed

Mallinckrodt's stock soars after profit and sales beat, raised guidance

Tomi Kilgore

Shares of Mallinckrodt PLC shot up 13% in premarket trade Tuesday, after the drug maker reported first-quarter earnings and sales that beat expectations, and raised its full-year outlook. The company swung to net income of $154.9 million, or $1.83 a share, from a loss of $18.0 million, or 21 cents a share, in the same period a year ago. Excluding non-recurring items, adjusted EPS rose 20% to $1.94, above the FactSet consensus of $1.70. Net sales rose 4.7% to $790.6 million, above the FactSet consensus of $766.3 million. Specialty brands sales fell 0.2% to $547.3 million but topped the FactSet consensus of $539.8 million, and specialty generics sales grew 18% to $243.3 million to beat expectations of $228.3 million. For 2019, the company raised its adjusted EPS guidance range to $8.30 to $8.60 from $8.10 to $8.40. The stock, which closed at a one-year low on May 1, has tumbled 21% over the past three months through Monday, while the SPDR Health Care Select Sector ETF has edged up 1.0% and the S&P 500 has gained 8.4%.