PDL BioPharma Q2 Profit Down, But Tops View, Shares Up - Update

(RTTNews) - Biotechnology company PDL BioPharma Inc. (PDLI), Monday reported a drop in profit for the second quarter despite a 10 percent growth in revenues, hurt largely by higher income tax expense. Earnings for the quarter easily trumped analysts' expectations, as did revenues.

Incline Village, Nevada-based PDL BioPharma's second-quarter profit dropped to $92.1 million or $0.52 per share from $93.7 million or $0.62 per share last year. On average, three analysts polled by Thomson Reuters expected earnings of $0.46 per share for the quarter. Analysts' estimates typically exclude special items.

Total revenues for the second quarter grew 10 percent to $162.8 million from $148.5 million last year.

Royalties from Queen et al. patents dropped to $115.1 million from $143.6 million last year. The company also reported royalty rights of $34.5 million for the quarter. Analysts had a consensus revenue estimate of $134.07 million for the quarter.

Income tax expense rose to $54.0 million from $42.0 million a year ago.

Looking ahead, the company said it will provide revenue guidance for the third quarter in September. Analysts currently expects third-quarter revenues of $135.17 million.

PDLI closed Monday's trading at $9.32, down $0.15 or 1.58%, on the Nasdaq. The stock, however, gained $0.50 or 5.36% in after-hours trade.