Shire plc beats by $0.09, beats on revs; guides FY18 EPS below consensus, revs above consensus (132.67)
- Reports Q4 (Dec) earnings of $3.98 per share, excluding non-recurring items, $0.09 better than the Capital IQ Consensus of $3.89; revenues rose 8.9% year/year to $4.14 bln vs the $3.97 bln Capital IQ Consensus.
- "Shire delivered 8% pro forma product sales growth to $14.4 billion in 2017, an increase of over $1 billion. Of particular note are the strong performance of our Immunology franchise and the significant contribution from recently launched products, as well as growth in international markets. We increased Non GAAP diluted earnings per ADS by 16%, realizing cost synergies ahead of plan. Delivered reported product sales growth of 33%, with the inclusion of a full year of legacy Baxalta sales. Achieved combined pro forma product sales growth of 8%; legacy Shire product sales growth of 7% and legacy Baxalta pro forma product sales growth of 9%. Strong demand for our Immunology products delivered 14% pro forma product sales growth; significant contribution from our subcutaneous immunoglobulin portfolio; CINRYZE supply stabilized in Q4 2017."
- Co issues guidance for FY18, sees EPS of $14.90-15.50, excluding non-recurring items, vs. $16.02 Capital IQ Consensus Estimate; sees FY18 revs of 15.4-15.9 bln vs. $15.47 bln Capital IQ Consensus.
- "2018 is a year of continued focus on commercial execution and targeted investment in our manufacturing infrastructure, new product launches, and pipeline to drive future growth. We expect to deliver mid-single digit product sales growth in 2018 after absorbing the anticipated impact of generics. "The mid-term outlook for growth is positive driven by our Immunology franchise, multiple near-term launches, and international markets. We are committed to achieving our projected revenue target of $17 - $18 billion in 2020." "Based on current assumptions, we expect Non GAAP diluted earnings per ADS growth to be lower than top line growth in 2018, mainly due to costs incurred from the start-up of our new U.S. plasma manufacturing site, intensifying genericization, and lower royalties. With the already disclosed manufacturing and SG&A cost reduction initiatives, we are on track to achieve mid-forties Non GAAP EBITDA margin by 2020."