Shares of Mallinckrodt PLC soared 24% in early trade Tuesday, enough to make them the biggest gainer on the NYSE, after the specialty drug maker beat profit and revenue expectations. The company swung to net income of $1.61 billion, or $17.41 a share, from a loss of $153.2 million, or $1.45 a share, in the same period a year ago, helped by a $1.5 billion benefit from the recent tax legislation. Excluding non-recurring items, adjusted earnings per share came to $2.01, beating the FactSet consensus of $1.68. Revenue fell to $792.3 million from $829.9 million, but was above the FactSet consensus of $768.4 million. Specialty generics sales fell 8.0% to $195.8 million, while specialty brands sales rose 3.5% to $582.2 million. For 2018, the company expects adjusted EPS of $6.00 to $6.50, below expectations of $7.14, but expects revenue to rise 3% to 6%, while the FactSet consensus of $3.19 billion implies a 0.9% decline. The stock, which closed at a record low earlier this month, has tumbled 63% over the past 12 months, while the SPDR S&P Pharmaceuticals ETF has gained 1.9% and the S&P 500 has climbed 24%.
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