On 4th of March, after the closure of markets, an announcement is expected from Salix Pharmaceuticals Ltd.(NASDAQ:SLXP) that the company would most likely be divulging its financial results of Q4 of the year 2014. The market shares of the company’s major drug Xifaxan and other such drugs have been experiencing a noticeable downfall, due to which the its overall revenue has been affected. Owing to this reason, analysts have also predicted that the company’s generated income would be less in comparison with its previous results.
However, Salix Pharmaceuticals Ltd. (NASDAQ:SLXP) hoards many surprises in itself and has successfully managed to prove 5 out of 9 analysts’ estimates to be in the negative and has amounted to a figure of $15.39. It is very possible that the when the financial results of this latest quarter are finally made public, Salix pharmaceuticals Ltd. (NASDAQ:SLXP) might turn out to be keeping in line with its trend.
According to the estimated report presented by the analysts, it is expected that for the fourth quarter of fiscal year 2014, the generated income of Salix Pharmaceuticals Ltd.(NASDAQ:SLXP) would be $187.9 million. This revenue reflects a downfall of 21% YOY which indeed a great amount, particularly when studied in comparison with revenues of the previous years. This is obvious in the statistics of the fourth quarter of fiscal year 2013 which delineate revenue of $257.6 million. Moreover, the revenue of fourth quarter wouldn’t just be lower in comparison with that of the previous fiscal year; rather it will also be less than the generated income of the previous three quarters.
Despite this slow progression of growth which is expected in the fourth quarter; there is a rising speculation that Salix Pharmaceuticals Ltd. (NASDAQ:SLXP) will come across brighter prospects and this will be reflected in the results of the year 2014. It is very likely that the adjusted EPS would witness an increase of $3.84 in the year 2014. This increase in turn would reflect an increased YOY. In contrary to these expected results, the previous year saw a decline in its YOY by 25.4%.
Not only does Salix Pharmaceuticals Ltd. (NASDAQ:SLXP) have a brighter picture painted in future, Sanofi also shares in these positive prospects. There are expectations abroad regarding the increase in its EPS of about $5.17 in the year 2014. This increase would consequently reflect a growth in YOY of about 1.5%. This increase in YOY is in contrast to the downfall in its YOY of approximately 5.7%, in fiscal year 2013. However, the positive results of this year would most probably compensate previous year’s results.
Yet, things do not appear to be so good for Salix’s Xifaxan. Wall Street report gives an estimate of $77.4 million revenue in the fourth quarter. This figure represents a decline in YOY of approximately 56%. Side by side, the estimate also claims that for the entire year, its sales would be on a standstill, i.e. at $ 492.1 million.
