Pharmaceutical company Mallinckrodt plc (MNK) Tuesday reported third-quarter results that topped analysts’ estimates, sending its shares up 10% during pre-market hours.
Earnings rose to $113.8 million, or $1.34 per share, from $63.7 million, or $0.66 per share in the year-over period. On an adjusted basis, earnings stood at $2.10 per share, higher than $1.80 per share expected by analysts.
Net sales rose 6.6% to $640 million versus the Street estimate of $633.43.
“Mallinckrodt performed well in the third quarter driven by strong customer demand for our hospital products and effective expense management. This tight expense control also helped us support increased R&D investments in our innovative pipeline,” CEO Mark Trudeau said.
SG&A expenses were $164.0 million or 25.6% of net sales, as compared to $186.3 million, or 31% a year ago.
Buoyed by the strong third quarter performance, the UK-based firm raised its adjusted diluted EPS guidance for fiscal 2018 to $7.00 to $7.20.
During Q3, Mallinckrodt also reduced total debt by $170.6 million and ended the quarter with net debt below $6.0 billion.