Aceto Corp (ACET) Tops Q3 EPS by 4c

Aceto Corp (NASDAQ: ACET) reported Q3 EPS of $0.21, $0.04 better than the analyst estimate of $0.17. Revenue for the quarter came in at $139.6 million versus the consensus estimate of $134.23 million.

"ACETO made significant progress during fiscal 2014 toward our long-term strategy of becoming a more human health-oriented company. An expanded and enhanced management team at our generic drug division, Rising Pharmaceuticals, the acquisition of the generic pharmaceutical company, PACK Pharmaceuticals, including its robust product pipeline, new finished dose product launches and a near doubling of research and development spend versus fiscal 2013 all contributed to this progress. The sales contributions from our three business segments are now roughly equal, a meaningful change from fiscal 2010 when Human Health accounted for only 14% and Performance Chemicals accounted for almost half of net sales," said Sal Guccione, Chief Executive Officer of ACETO.

"We finished the fiscal year with a solid fourth quarter," added Mr. Guccione. "Net sales increased 13.4% led by a 28.7% gain in the Human Health segment, reflecting the acquisition of PACK Pharmaceuticals and three drug launches in the quarter. Performance Chemicals achieved a 17.0% increase in segment gross profit on a 13.4% increase in sales, the first meaningful year-over-year sales gain in the segment in almost two years."

"Our fiscal 2014 full year results set records in terms of net sales, gross profits, net income and earnings per share. Net sales for the twelve month period ended June 30, 2014 were $510.2 million, a 2.1% increase from the twelve month period ended June 30, 2013," continued Mr. Guccione. "Gross profit was $114.7 million, an increase of 16.7%, compared to gross profit of $98.3 million in the prior year period. For the twelve month period, ACETO reported net income of $29.0 million, or $1.02 per diluted share, compared to $22.3 million, or $0.81 per diluted share, in the prior year twelve month period, increases of 29.9% and 25.9% respectively."

Mr. Guccione concluded, "For fiscal 2015 we currently anticipate launching eleven new generic drugs, of which two are projected to be first-to-market opportunities. We believe these product launches, together with full year results of the PACK acquisition and other sales initiatives, will help us deliver double digit sales and earnings per share growth in fiscal 2015. We do anticipate a decrease in sales of the high-value active pharmaceutical ingredient that favorably impacted the fiscal 2014 year, in particular the first half of fiscal 2014. To continue to execute upon our long-term growth strategy, we plan to increase research and development spending substantially for the second consecutive fiscal year, to approximately $9.0 million, up from $5.2 million in fiscal 2014 and $2.8 million in fiscal 2013."

For earnings history and earnings-related data on Aceto Corp (ACET) click here.

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