August 6, 2009 / 11:30 AM / 11 years ago

UPDATE 2-King profit dips, but results top estimates

* Q2 EPS ex items of 32 cents vs 26-cent view

* Q2 revenue rises 12 percent

* Shares rise 3.7 percent (Adds details from results, shares)

NEW YORK, Aug 6 (Reuters) - King Pharmaceuticals Inc KG.N posted a better-than-expected quarterly profit on Thursday, helped by strong revenue and cost savings from its Alpharma acquisition, and shares rose 3.7 percent.

Net income fell to $37.9 million, or 15 cents per share, from $40.8 million, or 17 cents per share, a year ago.

Excluding special items, earnings of 32 cents per share were 6 cents ahead of the average estimate of analysts, according to Reuters Estimates

Revenue rose 12 percent to $445 million, ahead of the $437.7 million expected by analysts. King’s $1.6 billion acquisition of Alpharma, completed in December, helped propel sales.

Sales, general and administrative expense rose 10 percent to $123.6 million. But that was about $20 million below what analysts on average expected, according to a King spokesman.

The Bristol, Tennessee-based company also said it was on track to reach $80 million in cost savings this year from the Alpharma acquisition, after previously projecting that it would not hit that target until next year.

King shares rose to $9.60 in premarket trading from their Wednesday close of $9.26 on the New York Stock Exchange. (Reporting by Lewis Krauskopf, editing by Maureen Bavdek)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below