Mallinckrodt (MNK) Stock: Flying On Earnings And Improved Guidance


MannKind Corporation MNKD Stock NewsMallinckrodt PLC (NYSE: MNK) is having an overwhelmingly strong start to the trading session in the pre-market hours this morning after the company reported its financial results for the second quarter. Not only did the results come in ahead of expectations, the company increased its guidance, exciting investors and sending the stock screaming for the top. Today, we’ll talk about:

  • The earnings report;
  • what we’re seeing from MNK as a result; and
  • what we’ll be watching with regard to the stock ahead.

MNK Announces Earnings

As mentioned above, Mallinckrodt is having an overwhelmingly strong start to the trading session this morning after the company announced its earnings for the second quarter. Here’s what we saw from the report:

  • Earnings – In terms of earnings, MNK said that it generated $15.6 million during the quarter. Earnings, adjusted for one time gains and costs came in at $1.78 per share. Analysts expected that earnings would come in at $1.49 per share.
  • Revenue – Revenue also proved to be a hit. During the quarter, the company generated revenue in the amount of $631.7 million. However, analysts expected that the company would generate revenue in the amount of $621.2 million.
  • Guidance – Finally, when it comes to guidance, more positive news was shared. During the full year, net sales growth is expected to come in between 4% and 7%. The company had previously guided for net sales growth to come in between 3% and 6%. Also, adjusted diluted earnings per share are expected to come in between $6.50 per share and $6.90 per share. Previously, the company guided for earnings to come in between $6.00 and $6.50 per share.

In a statement, Mark Trudeau, President and CEO at MNK, had the following to offer:

We are pleased with our overall results for the quarter, which built on a solid first quarter performance. With this, and with continued strong execution, our confidence has increased on the outlook for 2018 and we are raising guidance for the fiscal year… We continue to see good performance across our hospital products, especially INOMAX® and OFIRMEV®. H.P. Acthar® Gel performed essentially as expected in the quarter, and we were pleased with the positive preliminary data related to the drug in rheumatoid arthritis and multiple sclerosis presented in the quarter. Additionally, we are making strong progress and are ahead of our expectations in reducing debt.

We look forward to further H.P. Acthar Gel data updates in coming quarters supporting our efforts to ensure appropriate patient access. Likewise, across our development portfolio we continue to make progress and look forward to other upcoming data reports, including the anticipated readout of VTS-270 top-line results in the near term.

What We’re Seeing From The Stock 

One of the first lessons that we learn when we start to dig into the market is that the news leads to moves. In the case of Mallinckrodt, the news proved to be overwhelmingly positive. After all, what investor wouldn’t want to see stronger than expected earnings, revenue and guidance. So, it comes as no surprise that excited investors are pushing the stock toward the top in the market this morning. Of course, our partners at Trade Ideas were the first to alert us to the gains. Currently (8:10), MNK is trading at $27.89 per share after a gain of $3.54 per share or 14.54% thus far today.

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What We’ll Be Watching For Ahead

Moving forward, the CNA Finance team will continue to keep a close eye on MNK. In particular, we’re interested in following the continued growth we’re seeing from the company. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!

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