A pharmaceutical company that bungled its 2014 earnings just reported for the first time in a year - its stock is surging
Akorn Pharmaceuticals shares surged by as much as 36% in trading on Tuesday after the company finally published its 2015 earnings results and guidance for this year.
About a year ago, the company announced that because of accounting errors, it accidentally overstated its net revenue and pretax income from continuing operations for the 2014 fiscal year by about $35 million. Its shares have lost 54% since then.
On Tuesday, Akorn released unaudited 2015 results that estimated it earned about $1.14 in diluted earnings per share, and sales of $985 million.
None of this is comparable to the year before, since that still has to be restated. The company plans to file its accurate 2014 and audited 2015 results to the Securities and Exchange Commission (SEC) by May 9. It got an extension from the SEC last year to avoid getting delisted.
It forecast 8% revenue growth this year to a range of $1.06 billion to $1.08 billion, and earnings-per-share of $2.10 to $2.20. Both missed forecasts.
Here's a chart showing the jump in shares on Tuesday:
