Aggressive Growth Stock: Akorn, Incby Zacks
We last checked in on Akorn, Inc. (NASDAQ:AKRX) in August and things were looking good. So, how did shares weather the market turmoil that was just ahead?
Company Description
Akorn, Inc. makes multisource and branded pharmaceuticals. The company specializes in diagnostics and therapeutic products, hospital drugs and injectable pharmaceuticals.
Another Surprise
On Nov 1 Akorn reported another great quarter. Earnings per share came in at $0.08, 3 cents better than expected. Revenues surged 70% to $36.7 million, thanks largely to a recent acquisition but there was organic growth as well.
In the same release, Akorn raised its full year guidance as well. The company now expected revenue of between $130 million and $132 million. At that time the consensus was $123 million.
So, what did analysts think?
Estimates Keep Improving
As you might expect, analysts quickly raised earnings estimates. The Zacks Consensus Estimate for this year is up 4 cents, to $0.29. Back in 2010 the company’s profit was just a penny per share.
Next year’s average forecast is up 7 cents, to $0.38, for an expected growth rate of 32%.
Valuations
Shares of AKRX are going for more than 30 times this year’s estimates, but the potential growth gives them a PEG of 1.1. That is a decent value for a 28% 3-5 year growth rate.
The Chart
There has been some profit taking on the earnings news and recent market jitters, but the overall trend is still bullish.
http://www.dailymarkets.com/stock/2011/ ... orn-inc-2/