Salix reports third-quarter loss of $88.6 million, CFO resigns

MarketsAssociated Press

Salix Pharmaceuticals Ltd. posted lower-than-expected quarterly results and announced the abrupt resignation of its chief financial officer, and shares of the specialty drugmaker plunged in extended trading Thursday.

Salix reported a loss of $88.6 million, or $1.39 per share, in its third quarter. Earnings, adjusted for costs related to mergers and acquisitions and non-recurring costs, were $1.53 per share.

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The results fell short of Wall Street expectations. The average estimate of analysts surveyed by Zacks Investment Research was for earnings of $1.56 per share.

The drugmaker, which focuses on gastrointestinal diseases, posted revenue of $354.7 million in the period, which also missed Street forecasts. Analysts expected $393.2 million, according to Zacks.

A year ago, Salix earned $47.3 million, or 71 cents per share, on revenue of $238.2 million.

Salix lowered its annual guidance and now expects full-year earnings of $5.20 per share on revenue of $1.4 billion. Previously it forecast earnings per share of $6.16 on revenue of $1.6 billion.

Analysts expect the company to earn $6.16 per share on revenue of $1.6 billion, according to FactSet.

For the current quarter ending in December, Salix expects its per-share earnings $1.16 and revenue of $325 million. That compares with the average analyst estimate of $1.95 per share on revenue of $436 million.

Separately, Salix said it appointed Timothy Creech as acting financial chief effective immediately to succeed Adam Derbyshire, who resigned. Salix did not provide further details on the resignation of Derbyshire, who joined the company in 2000. The company said it has hired an executive search firm to recruit a permanent successor.

In after-hours trading, the stock changed hands down $51.55, or 37 percent, at $87. Salix shares have increased 54 percent since the beginning of the year, as of Thursday's close.

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Elements of this story were generated by Automated Insights using data from Zacks Investment Research. SLXP stock research report from Zacks.

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Keywords:Salix,Earnings Report