Elan Corporation,plc (NYSE:ELN) Outperforms Is Previous Quarter Results
Denver, CO, 07/30/2013 (Avauncer.com) – Shares of Elan Corporation,plc (NYSE:ELN) rose 4.22% to close at $15.56 in its last trading session. This was close to the higher end of its 52-week price range of $9.37 to $15.92. Also, shares remained heavily traded with 86.37 million shares being traded, up from the average volume of 9.68 million shares.
This was after the company succeeded in reporting exceptional results for its 2Q2013. The company reported total revenues from its continuing operations at $56.3 million, as compared to an expense of $0.2 million in 2Q2012. This was a phenomenal growth on the part of the company. The company was also successful in converting its net loss of $28.5 million a year ago, to a net income of $2.3 billion for 2Q2013. This resulted in a diluted share of $4.28, up from $0.05 in 2Q2012. The main reason of such a turnaround has been the ability of the company in completing its Tysabri transaction in the current quarter. This was coupled with the subsequent buyback of $1.0 billion share buyback, which led to further improvement of its per share earnings figure. Such buyback led to releasing idle funds tied up in its capital structure, relieving its Balance sheet.
The company also made some other debt repayments in the quarter, which improved its debt obligation costs, thereby improving earnings. Of the $2288.7 million net income it recorded in the current quarter, $2540.2 million was out of Tysabri transaction itself. The buyback helped reducing its outstanding shares, which led to overall improvement in it’s per share earnings. The company has displayed extraordinary performance in the current quarter, which has cash reserves of $1.9 billion, despite making such buyback and repaying its debt in complete. The company has no debt outstanding in its Balance Sheet; this has enhanced the image of its capital structure in all.