Ivax Posts Record Revenue

The drugmaker more than doubles its fourth-quarter profit.
By Robert Steyer ,

Shares of

Ivax

(IVX)

advanced Tuesday after the Miami-based drug company reported fourth-quarter financial results that handily beat Wall Street's estimates and set a record for quarterly revenue.

Ivax, which makes generic and brand-name drugs, said it earned $63.2 million, or 24 cents a share, on revenue of $509.2 million for the three months ended Dec. 31. The consensus among analysts polled by Thomson First Call was for a profit of $50.7 million, or 19 cents a share, on revenue of $466.6 million.

For the same period in 2003, Ivax earned $29.3 million, or 12 cents a share, on revenue of $399 million.

Ivax's stock gained $1.71, or 10.8%, to $17.50 in early trading Tuesday.

Even though Ivax's fourth-quarter and full-year 2004 results trounced corresponding results for 2003, the company said 2005 will be "a transitional year with more significant earnings increases to come in 2006 and beyond."

Ivax predicted earnings per share would be in the range of 76 cents to 86 cents for 2005. The average analyst estimate is 83 cents, according to Thomson First Call.

Ivax said its 2005 predictions exclude sales from generic versions of brand-name drugs from other companies whose patents Ivax is challenging. The company said full-year results would be affected by a higher tax rate, restructuring charges, integration of recent acquisitions and the second-half launch expenses of a new asthma drug.

But in 2006, Ivax predicts an EPS in the range of $1.35 to $1.55 compared with a Thomson First Call consensus of $1.01. This prediction also excludes sales from generic versions of brand-name drugs whose patents are being challenged.

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