Kos Keeps Outlook Intact

The company also posts second-quarter results that top estimates.
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Kos Pharmaceuticals

(KOSP)

on Thursday reported second-quarter financial results that exceeded Wall Street's estimates.

The Cranbury, N.J., company also issued third-quarter guidance around the analysts' consensus, and it made an upward adjustment in its full-year earnings-per-share prediction.

During the three months ended June 30, Kos earned $28.9 million, or 61 cents a share, on revenue of $179.4 million. The consensus of analysts surveyed by Thomson First Call forecast a profit of $24.9 million, or 56 cents a share, on revenue of $173.3 million.

For the same period last year, the company earned $38.5 million, or 83 cents a share, on revenue of $120.3 million. This quarter was aided by a one-time gain of $6 million related to a settlement with another drug company.

Kos predicts it will earn "about 70 cents a share" for the third quarter, or a penny better than the Thomson First Call consensus.

For the full year, Kos maintained its EPS guidance of $2.65 to $2.75, but its performance so far has prompted it to forecast a final result at the upper end of that range. The consensus profit estimate is $2.63.

In the second quarter, Kos was paced by Niaspan, a cholesterol drug and its biggest product. Sales rose 41% to $106 million, representing 59% of quarterly sales.

Shares of Kos were off 52 cents to $71.38 in late morning trading.