Shire PLC (SHPG) reported record third quarter revenues on Friday – $1.6 billion and 33% growth over the year-ago quarter – with earnings of $2.93 per share. The company revised higher its 2014 EPS growth guidance to the “high-30% range” vs previous guidance of “low-to-mid 30% growth.” SHPG gapped up 4% on Friday.
Shire reiterated an effective tax rate of 17-19%, which recalls the reason SHPG dropped 30% just last week: AbbVie (ABBV) walking away from a tax-driven acquisition of the Irish drugmaker.
All eyes are on Shire’s standalone capabilities, and the company is making a concerted effort to signal to investors that it can do alright on its own: Wall Street is highly expectant of some near-term acquisitions. The company came away from the AbbVie debacle with a $1.64 billion breakup fee that’s burning a whole in investors’ pockets. The company ended the third quarter with $468 million in the bank following the $4.2 billion Viropharma (VPHM) acquisition late last year (a big win for PropThink Premium subscribers).
