Mallinckrodt plc MNK reported adjusted earnings of $2.01 per share in the second quarter of fiscal 2016 (ended Mar 25, 2016), beating the Zacks Consensus Estimate of $1.72. Earnings also increased from the year-ago figure of $1.70.Net sales in the quarter came in at $918 million, up 12.1% and above the Zacks Consensus Estimate of $874 million.The Quarter in DetailThe company reports results under three segments – Specialty Brands, Specialty Generics and Nuclear Imaging. In Nov 2015, the company sold its contrast media and delivery systems (CMDS) business to Guerbet S.A. Following the sale, the Global Medical Imaging segment was renamed Nuclear Imaging.Sales at the Specialty Brands segment were $535 million, compared with $334.3 million in the year-ago quarter. The increase in net sales was primarily driven by the inclusion of Inomax and Therakos, which generated combined sales of $165.7 million. Acthar sales came in at $248.4 million, up from $228 million a year ago. Ofirmev sales jumped 4.4% year over year to $71.1 million.Specialty Generics generated sales of $264.4 million, down 27.1% due to lower sales in various product categories as a result of increased competition.Sales at the Nuclear Imaging segment were $102.2 million, compared with $109.5 million in the year-ago quarter.Research and development expenses were roughly flat at $58.6 million. Selling, general and administrative expenses were $231.2 million, down 25% due to the ongoing restructuring.During the quarter, the company repurchased 3.4 million shares under its share repurchase program.Earlier, Mallinckrodt had acquired three commercial-stage topical hemostasis drugs from The Medicines Company MDCO – Recothram Thrombin topical (recombinant), PreveLeak and Raplixa (fibrin sealant) – in a bid to diversify its pain management franchise and strengthen its growing hospital portfolio.Raises GuidanceManagement has lifted its outlook for fiscal 2016 earnings yet again. The company now expects adjusted earnings per share in the range of $8.15–$8.50, up from the previous projection of $7.85 to $8.30.Our TakeMallinckrodt’s second-quarter fiscal 2016 results were impressive, with the company beating both top- and bottom-line estimates on the back of solid performance at the Specialty Brands segment. The company’s acquire-to-invest policy is apparently yielding results, as both Inomax and Therakos reported solid demand, along with incremental volume growth of Ofirmev. Consequently, the company raised its annual guidance yet again, encouraged by a strong first half. Moreover, the recent acquisitions should provide accretion to earnings in fiscal 2016.Mallinckrodt carries a Zacks Rank #3 (Hold). A couple of better-ranked stocks in the health care sector are Gilead Sciences GILD and Aegerion Pharmaceuticals AEGR. Both stocks sport a Zacks Rank #1 (Strong Buy). Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report MEDICINES CO (MDCO): Free Stock Analysis Report GILEAD SCIENCES (GILD): Free Stock Analysis Report AEGERION PHARMA (AEGR): Free Stock Analysis Report MALLINCKRODT PL (MNK): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research