Endo International PLC (NASDAQ: ENDP) reported its first-quarter financial results after the markets closed on Thursday. The company vastly underwhelmed with earnings, and analysts definitely had something to say about it, with the stock dropping by about 40%.
24/7 Wall St. has included some highlights from the earnings report, as well as what analysts are saying about Endo after the report.
The company posted $1.08 in earnings per share (EPS) on $963.5 million in revenue. Thomson Reuters consensus estimates had called for EPS of $1.05 on $964.4 million in revenue. In the same period of last year, the company reported $1.17 in EPS and revenue of $714.1 million.
In terms of guidance for the full year, the company expects to have EPS in the range of $4.50 to $4.80 and revenues in the range of $3.87 billion to $4.03 billion. The consensus estimates are $5.69 in EPS on $4.30 billion in revenue.
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Separately, Endo announced the appointment of two new members to its board of directors: Douglas S. Ingram, former president of Allergan and current CEO of Chase Pharmaceuticals, and Todd B. Sisitsky, managing partner of TPG Capital.
For the first quarter, Endo’s U.S. Generic Pharmaceutical segment revenues totaled $583 million, up 63% from the same period last year. This was the result of the additional sales from the Par acquisition and the underlying growth of certain products. International Pharmaceuticals had revenues of $71 million, down 2% from last year, but it would be up 11% excluding a $10 million unfavorable currency impact.
On the books, cash and cash equivalents totaled $222.0 million at the end of the quarter, compared to $272.3 million at the end of 2015.
A few analysts weighed in on the company after earnings:
- Mizuho downgraded it to Underperform from Neutral and lowered the price target to $13 from $42.
- Piper Jaffray downgraded it to a Neutral rating from Overweight.
- Leerink Swann downgraded it to Market Perform from Outperform.
- RBC Capital downgraded it to Sector Perform from Outperform.
- Stifel has a Buy rating but lowered its price target to $75 from $90.
- Barclays has an Equal Weight rating and lowered its price target to $28 from $37.
- Guggenheim has a Buy rating and lowered its price target to $35 from $65.
- JMP Securities lowered its price target to $52 from $56.
- JPMorgan lowered its price target to $40 from $65.
- Susquehanna has a Neutral rating and lowered its price target to $22 from $68.
- William Blair has a Market Perform rating with a $27 price target.
Shares of Endo closed trading down more than 39% at $16.17 on Friday, with a consensus analyst price target of $55.59 and a 52-week trading range of $15.69 to $88.84.
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