The Chesire, CT-based company reported second quarter net income of $170.2 million, or $1.44 per share, on revenue that rose 24.1% year over year to $636.2 million.
Analysts on average were expecting the company to report earnings of $1.36 per share on revenue of $627.82 million.
The company also lowered its full year earnings estimates to between $4.70 and $4.80 per share from its previous view between $5.60 and $5.80 per share.
Analaysts are expecting the company to report earnings of $5.03 per share.
TheStreet Ratings team rates ALEXION PHARMACEUTICALS INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate ALEXION PHARMACEUTICALS INC (ALXN) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations, notable return on equity and expanding profit margins. We feel its strengths outweigh the fact that the company has had sub par growth in net income."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- ALXN's revenue growth trails the industry average of 22.0%. Since the same quarter one year prior, revenues slightly increased by 6.0%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- ALXN's debt-to-equity ratio is very low at 0.05 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 4.14, which clearly demonstrates the ability to cover short-term cash needs.
- Net operating cash flow has significantly increased by 174.17% to $23.03 million when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 133.59%.
- ALEXION PHARMACEUTICALS INC's earnings per share declined by 43.0% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, ALEXION PHARMACEUTICALS INC increased its bottom line by earning $3.26 versus $1.26 in the prior year. This year, the market expects an improvement in earnings ($4.94 versus $3.26).
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Biotechnology industry and the overall market on the basis of return on equity, ALEXION PHARMACEUTICALS INC has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
- You can view the full analysis from the report here: ALXN Ratings Report