Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Why Akorn Inc. Shares Popped

Watch stocks you care about

The single, easiest way to keep track of all the stocks that matter...

Your own personalized stock watchlist!

It's a 100% FREE Motley Fool service...

Click Here Now

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Akorn, Inc.  (NASDAQ: AKRX  ) , a branded and generic pharmaceutical drugmaker, rose as much as 15% after reporting better-than-expected second-quarter earnings results.

So what: As you might imagine from the move higher, investors are pretty pleased with Akorn for delivering a 22% increase in revenue to $77 million and an adjusted profit of $0.14 per share. Comparatively speaking, the Street had only been looking for the company to report a profit of $0.12 per share on $75.6 million in sales. The results were still mixed, though, with sales volumes of new and existing products providing the revenue bump, but average selling prices of existing items and weaker sales in its Indian subsidiary weighing them down. Still, Akorn was able to reaffirm its full-year guidance, calling for revenue in a range of $305 million to $315 million with EPS of $0.53-$0.55. Both are in line with Wall Street's forecast.

Now what: If you're the type of investor that wishes you'd gotten in on Pfizer back in the 1990s, then Akorn could be just the company you're looking for. Akorn is a hybrid pharmaceutical company, like Teva Pharmaceutical, in that it develops exclusive branded drug, as well as maintains a rapidly growing generic drug portfolio. Keep in mind that Akorn earlier this year stated its intentions to bring 39 branded and generic drugs to market between 2013 and 2015 representing a total market value of $3 billion. There could potentially be a lot of upside left in this company if its margins don't get too pressured by competition abroad. I'd strongly recommend adding it to your watchlist and keeping an eye on Akorn.

It's no secret that most biotech stocks have been soaring recently, but the best investment strategy is to pick great companies and stick with them for the long term. The Motley Fool's free report "3 Stocks That Will Help You Retire Rich" not only shares stocks that could help you build long-term wealth, but also winning strategies that every investor should know. Click here to grab your free copy today.

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2581516, ~/Articles/ArticleHandler.aspx, 9/28/2016 3:05:39 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 5 hours ago Sponsored by:
DOW 18,228.30 133.47 0.74%
S&P 500 2,159.93 13.83 0.64%
NASD 5,305.71 48.22 0.92%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/27/2016 4:00 PM
AKRX $27.78 Up +0.36 +1.31%
Akorn CAPS Rating: ***