Endo Pharma Q1 Result Matches Est. - Analyst Blog
29 Aprile 2011 - 5:00PM
Zacks
Endo
Pharmaceuticals’ (ENDP) first quarter 2011 earnings
(excluding special items) of $1.00 per share, surpassed the
year-ago earnings by 26 cents. Earnings were in-line with the Zacks
Consensus Estimate. The year over year rise in earnings was
attributable to the higher revenues reported in the first quarter
of 2011.
Quarter in
Details
Revenues climbed 54% to $560
million in the reported quarter. The revenue increase was
attributable to impressive performances across all segments at Endo
Pharma. Revenues were in-line with the Zacks Consensus
Estimate.
The first quarter of 2011 witnessed
an 11% rise in the sale of branded and non-promoted drugs to $375
million. The impressive showing by key products in the pain,
urology and oncology divisions drove the increase. The sale of
generic products at Endo Pharma jumped 419% to $134.4 million in
the first quarter of 2011.
Revenues from the segment were
aided by the inclusion of results from Qualitest Pharmaceuticals (a
generic company). We remind investors that Qualitest
Pharmaceuticals was purchased by Endo Pharma late last year for
$1.2 billion in cash.
Revenues from devices and services
accounted for the balance in the reported quarter. The entire
revenues from the segment came from HealthTronics, which was
acquired by Endo Pharma in July 2010.
We note that Endo Pharma is on an
acquisition spree to expand its business. The company completed
three acquisitions in 2010 and signed an agreement to acquire
American Medical Systems (AMMD), a leading
pelvic-health devices provider. The deal is expected to close
in the third quarter of 2011.
2011 View
Backed
Following the release of first
quarter results, Endo Pharma maintained its 2011 revenue and
adjusted earnings guidance (on a standalone basis). The company
expects to earn in the range of $4.20-$4.30 per share on revenues
of $2.35-$2.45 billion. We believe Endo Pharma, with its strong
portfolio and continuous efforts to expand and diversify its
business, will easily achieve the guidance. The Zacks Consensus
Earnings Estimate for 2011 is above the guidance range provided by
the company and hints at earnings of $4.33 per share. The Zacks
Consensus Revenue Estimate reflects 2011 revenues of $2.36 billion
for Endo Pharma.
Our
Recommendation
Currently, we have a Neutral stance
on Endo Pharma in the long-run, which is supported by the Zacks #3
Rank (short-term Hold recommendation).
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ENDO PHARMACEUT (ENDP): Free Stock Analysis Report
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