Akorn Inc (NASDAQ:AKRX)
Akorn, Inc. (AKRX), a specialty generic pharmaceutical company yesterday announced their first quarter 2016 financial results. Akorn reported first quarter earnings of $0.54 per share which is exactly what analyst were expecting. Akorn reported first quarter revenues increased 18% year over year to $268.3 million which beat analyst expectations of $267.58 million. Akorn projected full year earnings per share to be in between $2.10 and $2.20 per share which fell in line with analyst estimates of $2.17 per share. Akorn projected full year revenues to be in between $1.06 and $1.08 billion which fell in line with analyst estimates of $1.08 billion.
Akorn, Inc. CEO’s Comments
Raj Rai, Akorn’s Chief Executive Officer, commented, “We are off to a good start to 2016. In the first quarter, we realized a solid organic growth from our portfolio and since December, we have launched five new products. With the restatement behind us, we are now focused on accomplishing our critical objectives set forth for 2016 as well as increasing our product development efforts for enhancing future growth prospects.” Globe Newswire
AKRX Technical Analysis
AKRX opened trading yesterday at $26.90 which was up from the previous days trading of $26.50. AKRX closed trading yesterday at $27.81, equivalent to a 5% increase in price. Taking a look at the daily chart we can see the last time AKRX traded above this price level was on May 11th when it traded at $27.85. Taking a closer look at the daily chart we can see that AKRX has been on an overall decline dating back to January 6th when it traded at $38.52. AKRX has a float of 84.57 million shares and traded 1.27 times the normal daily trading volume on Monday. For trading purposes I would like to see AKRX open trading above $27.50 and if it does I would be looking to take a long position at the bell. My stop loss would be $0.20 from my entry position fearing anything more than that and the stock would start to fill in the gap up.
Company Profile
Akorn, Inc., a specialty generic pharmaceutical company, develops, manufactures, and markets generic and branded prescription pharmaceuticals, as well as private-label over-the-counter (OTC) consumer health products and animal health pharmaceuticals in the United States and internationally. It operates in two segments, Prescription Pharmaceuticals and Consumer Health. The Prescription Pharmaceuticals segment markets generic and branded ophthalmics, injectables, oral liquids, otics, topicals, inhalants, and nasal sprays. This segment’s generic products include Atropine Sulfate Ophthalmic Solution; Clobetasol Propionate Ointment; Dehydrated Alcohol Injection; Ephedrine Sulfate Injection; Hydralazine Hydrochloride Injection; Lidocaine Ointment; Methylene Blue Injection; Myorisan Soft Gelatin Capsules; Nembutal Sodium Solution; and Progesterone Capsules. The Consumer Health segment markets branded and private label animal health products, as well as OTC products for the treatment of dry eye under the TheraTears brand name. This segment also markets other OTC consumer health products, including Mag-Ox, a magnesium supplement, as well as the Diabetic Tussin line of cough and cold products. Akorn, Inc. was founded in 1971 and is headquartered in Lake Forest, Illinois.