NEW YORK (TheStreet) -- Shares of Lannett Co. (LCI - Get Report) are soaring, up 8.21% to $41.01, after the generic pharmaceutical products company said that it expects to report fiscal 2014 fourth quarter net sales of about $81 million and diluted earnings per share in the range of 60 cents and 64 cents.
That compares with the FactSet consensus estimates of 42 cents per share and $71.7 million in net sales.
For the prior year fourth quarter, net sales were $40.2 million and diluted earnings per share were 12 cents.
Lannett will report its financial results for fiscal 2014 on August 27 after the market close.
TheStreet Ratings team rates LANNETT CO INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate LANNETT CO INC (LCI) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- LCI's very impressive revenue growth greatly exceeded the industry average of 4.5%. Since the same quarter one year prior, revenues leaped by 105.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
- LCI's debt-to-equity ratio is very low at 0.00 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 4.91, which clearly demonstrates the ability to cover short-term cash needs.
- Powered by its strong earnings growth of 350.00% and other important driving factors, this stock has surged by 197.76% over the past year, outperforming the rise in the S&P 500 Index during the same period. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
- LANNETT CO INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, LANNETT CO INC increased its bottom line by earning $0.46 versus $0.14 in the prior year. This year, the market expects an improvement in earnings ($1.75 versus $0.46).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Pharmaceuticals industry. The net income increased by 482.6% when compared to the same quarter one year prior, rising from $3.95 million to $23.00 million.
- You can view the full analysis from the report here: LCI Ratings Report