Here's Why Endo Int'l (ENDP) Stock is Taking a Hit Today
NEW YORK (TheStreet) -- Endo International (ENDP) - Get Report shares are falling 1.27% to $60.48 on Wednesday as analysts anticipate that the company will report a year-over-year decline in earnings.
For the latest quarter, projections are earnings of 99 cents a share on revenue of $736.16 million.
These are less than what the company earned during the same quarter the year before, when earnings came in at $1.15 a share on revenue of $763.9 million.
Despite weak forecasts, the company's generic business in the U.S. is expected to do well due to strong demand and launch of new products, according to Zacks Equity Research.
Based in Dublin, Endo is a specialty healthcare company, focuses on branded and generic pharmaceuticals and devices worldwide.
Separately, TheStreet Ratings team rates ENDO INTERNATIONAL PLC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
We rate ENDO INTERNATIONAL PLC (ENDP) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, weak operating cash flow and a generally disappointing performance in the stock itself.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 3.4%. Since the same quarter one year prior, revenues rose by 24.0%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- The gross profit margin for ENDO INTERNATIONAL PLC is rather high; currently it is at 64.59%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -34.06% is in-line with the industry average.
- ENDO INTERNATIONAL PLC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, ENDO INTERNATIONAL PLC continued to lose money by earning -$2.13 versus -$4.67 in the prior year. This year, the market expects an improvement in earnings ($4.55 versus -$2.13).
- Net operating cash flow has significantly decreased to $12.32 million or 93.65% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Pharmaceuticals industry. The net income has significantly decreased by 1283.5% when compared to the same quarter one year ago, falling from $21.16 million to -$250.42 million.
- You can view the full analysis from the report here: ENDP