Shire 3rd-qtr sales and adjusted EPS beat analysts’ forecasts

Ireland-headquartered Shire (LSE: SHP) today reported third-quarter 2015 financials, showing that total revenues increased 4% to $1.66 billion, better than the $1.63 billion expected by City analysts, benefiting from higher royalties, primarily due to the inclusion of Sensipar (cinacalcet hydrochloride) royalties acquired with its $5.2 billion acquisition of NPS Pharma earlier this year. Shire’s shares were up 4.2% at £46.31 by late-afternoon.

On a non generally-accepted accounting principles (GAAP) basis, operating income increased 1% to $725 million as a result of higher total revenues, partially offset by higher combined R&D and SG&A costs (up 5%). Non GAAP EBITDA margin (excluding royalties and other revenues) was 43%, down 3 percentage points compared to the like 2014 quarter. On an adjusted basis, the company generated $3.24 a share in the quarter, up 15% from a year ago. Analysts at Jefferies quoted by Reuters, who have a "buy" rating on the stock, said it was a strong quarter, with earnings per share of $3.24 coming in well head of both its and consensus expectations of $2.91 and $2.88 respectively.