Shire beats earnings forecasts, boosted by Baxalta acquisition

Ireland-headquartered rare diseases specialist Shire (LSE: SHP) reported a 110% leap in first-quarter 2017 total revenues to $3.57 billion, boosted by its $32 billion acquisition last year of Baxalta, and at the top end of analysts’ forecasts. Sales excluding legacy Baxalta were up 11% to $1.8 billion.

Shire generated non-GAAP (generally-accepted accounting principles) earnings per American Depositary Receipt (ADS) of $3.63, up 14%, reflecting strong business fundamentals and operational discipline, and beating analysts’ forecasts of $3.27. Diluted earnings per ADS were $1.23, a decline of 42%. Non-GAAP net income was $1.10 billion, a year-on-year rise of 74%. Net profit declined 11% in the three months to $375 million from $419 million a year earlier,

In mid-afternoon trading, after the results, Shire shares gained 3% to 4,363 pence.