Earnings Review and Free Research Report: Patheon’s Q2 Results Topped Estimates; To be Acquired by Thermo Fisher

LONDON, UK / ACCESSWIRE / June 28, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Patheon N.V. (NYSE: PTHN), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=PTHN, following the Company’s posting of its financial results for the second quarter fiscal 2017 (Q2 FY17) on June 08, 2017. The Durham, North Carolina-based Company reported a 3.2% y-o-y growth in its quarterly revenue, whereas its gross profit rose 1.7% on a y-o-y basis during the reported quarter. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member’s account at: http://protraderdaily.com/register/.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on PTHN. With the links below you can directly download the report of your stock of interest free of charge at: http://protraderdaily.com/optin/?symbol=PTHN.

Earnings Reviewed

During the quarter ended on April 30, 2017, Patheon reported revenue of $483.4 million compared to $468.6 million recorded at the end of Q2 FY16. Revenue numbers for Q2 FY17 beat market consensus estimates of $466 million. The Company’s cost of goods sold also rose during Q2 FY17 to $342.7 million from $330.3 in the last year’s comparable quarter.

The pharmaceutical development and manufacturer’s net income from continuing operations improved to $27.6 million, or $0.19 per diluted share, in Q2 FY17 from $1.9 million, or $0.02 per diluted share. The Company’s adjusted net income came in at $28.6 million, or $0.20 per diluted share, in Q2 FY17 compared to $27.5 million, or $0.24 per diluted share, in Q2 FY16. Furthermore, Wall Street had expected the Company to report net income from continuing operations of $0.19 per diluted share.

Operational Metrics

For the reported quarter, the Company’s gross profit stood at $140.7 million compared to $138.3 million in Q2 FY16. During Q2 FY17, Patheon’s selling, general, and administrative expenses were $92.1 million versus $74.8 million in the prior year’s corresponding quarter. The Company’s operating income for Q2 FY17 came in at $37.8 million compared to $52.8 million in Q2 FY16. The Company reported adjusted EBITDA of $94.2 million for Q2 FY17 versus $98.0 million in the last year’s comparable quarter.

Segment-wise

Patheon’s Drug Product Services segment’s reported a y-o-y growth in revenues to $297.2 million from $287.4 million in Q2 FY16. The segment’s adjusted EBITDA improved to $77.4 million in Q2 FY17 from $72.7 million in the previous year’s same quarter.

Pharmaceutical Development Services segment’s revenue rose to $57.8 million in Q2 FY17 from $53.4 million in the previous year’s same quarter. Furthermore, the segment reported adjusted EBITDA of $18.4 million in Q2 FY17 compared to $16.7 million in the prior year’s comparable quarter.

The Company’s Drug Substance Services segment’s revenue also increased during Q2 FY17 to $129.2 million from $127.9 million in Q2 FY16. During the reported period, the segment adjusted EBIDTA came in at $26.1 million compared to $30.8 million in Q2 FY16.

Cash Flow & Balance Sheet

During the first half of FY17, cash provided by operating activities of continuing operations was $20.9 million compared to cash used in operating activities of continuing operations of $43.0 million in the prior year’s same period. At the close of books on April 30, 2017, Patheon had $92.7 million in cash and cash equivalents compared to $165.0 million at the close of books on October 31, 2016. The Company’s long-term debt stood at $2.07 billion as on April 30, 2017, compared to $2.05 billion as on October 31, 2016.

Acquisition

In a separate press release on May 15, 2017, Patheon announced that its Boards of Directors and that of Thermo Fisher Scientific Inc.’s (NYSE: TMO) have approved Thermo Fisher’s acquisition of Patheon. Thermo Fisher will commence a tender offer to acquire all of the issued and outstanding shares of Patheon for $35.00 per share in cash. The transaction represents a purchase price of approximately $7.2 billion, which includes the assumption of approximately $2.0 billion of net debt.

Stock Performance

On Tuesday, June 27, 2017, the stock closed the trading session at $34.84, marginally up 0.11% from its previous closing price of $34.80. A total volume of 296.69 thousand shares have exchanged hands. Patheon’s stock price soared 0.84% in the last one month, 34.21% in the past three months, and 23.07% in the previous six months. Furthermore, since the start of the year, shares of the Company surged 21.35%. The stock is trading at a PE ratio of 46.08. At Tuesday’s closing price, the stock’s net capitalization stands at $5.06 billion.

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