Cephalon

( CEPH) issued earnings that topped Wall Street's estimates for a second quarter filled with several deals, but the company also gave an outlook that disappointed investors.

The company offered third-quarter EPS guidance that fell below the consensus prediction, and it cut its full-year estimate below that of analysts' prevailing opinion.

The forecast, issued after markets closed Monday, shook the stock. In regular trading, shares gained $1.04 to $43.84, but they fell $1.49 after the close.

Excluding several one-time items, Cephalon reported what it calls adjusted earnings of $42 million, or 69 cents a share, on revenue of $286 million for the three months ended June 30. The consensus of analysts polled by Thomson First Call predicted a profit of $37.4 million, or 59 cents a share, on revenue of $297 million.

On a GAAP basis, Cephalon lost $249 million, or $4.29 a share. For the same period last year, it lost $8.4 million, or 15 cents a share, on revenue of $239.5 million. The big charges relate primarily to several transactions, including the purchase of one company.

For the third quarter, Cephalon forecast an adjusted EPS of 65 cents to 70 cents and sales in the range of $310 million to $320 million. The Thomson First Call consensus predicts earnings of 78 cents and sales of $332 million.

For the full year, Cephalon cut its profit guidance by 10 cents to a range of $2.70 to $2.85 a share. Cephalon kept its revenue estimate in the range of $1.2 billion to $1.25 billion. The average estimate from analysts was for earnings of $2.86 a share and sales of $1.26 billion.

Despite the adjustments in guidance, Frank Baldino Jr., the chairman and CEO, said long-term financial gains would outweigh the short-term revisions. "There have been few quarters in Cephalon's history that have been as transforming as this past quarter," he said in a prepared statement.

During the quarter, Cephalon acquired

Salmedix

, which gives it Treanda, a drug in late-stage clinical trials for treating non-Hodgkins lymphoma. It also signed a deal with

Alkermes

(ALKS) - Get Report

, enabling it to comarket Vivitrex, an experimental product for treating alcoholism.

And it acquired Trisenox, a treatment for a type of leukemia from

Cell Therapeutics

(CTIC) - Get Report

. Trisenox has been available in the U.S. since 2000 and in Europe since 2002.

The flurry of activity has enabled Cephalon to broaden its product line, which now includes Provigil for sleep disorders, Actiq for alleviating cancer-caused pain and Gabitril for partial seizures related to epilepsy.

Provigil accounted for nearly half of Cephalon's sales in the second quarter. The company also has filed applications with the Food and Drug Administration for approval of a medication to treat attention deficit hyperactivity disorder and another drug for treating sleep disorders. It's also developing another cancer-pain drug.