Alkermes Raises FY19 Adj. Earnings Outlook; To Incur Q4 Charge - Quick Facts

(RTTNews) - While reporting its financial results for the third quarter on Wednesday, Alkermes Plc (ALKS) announced details of its restructuring plan and said it expects to incur a charge in the fourth quarter. In addition, the company raised its outlook for fiscal 2019 adjusted earnings.

In October 2019, Alkermes completed a review of the company's operations, cost structure and growth opportunities and implemented a restructuring plan.

The restructuring included the elimination of about 160 current positions across the organization, a decrease in the company's expected near-term hiring plans and implementation of cost-saving measures related to external spend. These efforts are expected to result in cost savings of approximately $150 million.

The company said it expects to record a charge of approximately $15 million in the fourth quarter of 2019 as a result of the restructuring, consisting of one-time termination benefits for employee severance, benefits and related costs.

For fiscal 2019, Alkermes continues to expect total revenues to range from $1.14 billion to $1.19 billion, and net loss to range from $135 million to $165 million, or $0.86 to $1.05 per share.

The company now forecasts full-year adjusted earnings of $0.44 to $0.57 per share, up from the prior range of $0.25 to $0.43 per share.

On average, analysts polled by Thomson Reuters expect the company to report earnings of $0.34 per share for the year on revenues of $1.18 billion. Analysts' estimates typically exclude special items.