Looks like that acquisition of rival Par Pharmaceutical is working out for Endo International Plc – Ordinary Shares (NASDAQ:ENDP), as earnings were helped big-time by the boost in pharmaceutical sales.
Overall, Endo’s revenues wafted up 25% to 921 million, as the firm’s $8 billion buyout of Par Pharma last year drove Endo’s pharmaceutical business up 67% to $565 million. The Street was expecting $864 million.
As for net income, Endo’s reported $390 million translates into per-share earnings of $1.75. To put that in perspective, the company actually lost $91 million, or 49 cents per share, in the year-ago quarter.
Not All Great for ENDP Stock?
But here’s where things get murky, Endo’s adjusted numbers of $192 million in net income and 86 cents EPS are actually lower than last year’s adjusted $204 million net and $1.08 per share. But against market expectations, ol’ Endo did better than what the Street pegged it for — an adjusted 74 cents per share.
The real reason that decline on an adjusted basis doesn’t matter, however, is because it’s at least partially due to an increase in outstanding shares and an increase in interest expense, rather than anything fundamentally wrong with the business.
Here’s what Endo CEO Rajiv De Silva said in the earnings release:
“During the second quarter 2016, Endo remained focused on operational execution. We have delivered results across all of our businesses that are on-track or ahead of Company expectations for the quarter and today we are affirming our full year 2016 revenue and adjusted diluted EPS financial guidance while increasing investment in Branded and Generics R&D as well as BELBUCA™ and XIAFLEX® promotion,”
For the full year, Endo forecasts sales in the range of $3.87 billion and $4.03 billion — which is pretty much in the realm of the consensus. As for per-share earnings, the firm sees anywhere between $4.50 and $4.80. The mid-point, $4.65, is well ahead of the $4.54 consensus.
ENDP stock is now up some 22% as volume throttles past its usual 7 million to 28 million shares trading hands.
As of this writing, John Kilhefner did not hold a position in any of the aforementioned securities.
