NEW YORK (TheStreet) -- Shares of Lannett (LCI) - Get Report were surging 17.91% to $38.11 on heavy trading volume mid-Wednesday morning after the company reported fiscal 2016 fourth quarter results that topped estimates.
After Tuesday's market close, the Philadelphia-based generic pharmaceuticals company reported adjusted earnings of 73 cents per share on revenue of $168.9 million, higher than analysts' projections of earnings of 60 cents per share on revenue of $161.5 million.
For the full year, the company posted adjusted earnings of $3.42 per diluted share on revenue of $542.5 million.
Lannett is forecasting earnings of roughly $3.40 per share for fiscal 2017 on revenue between $690 million and $700 million. Analysts are looking for earnings of $3.13 per share on revenue of $672.98 million for the year.
Additionally, Oppenheimer released a note this morning saying the company's guidance could prove conservative depending on its paroxetine pipeline, as Lannett forecasted no sales contribution from the drug.
The firm views the biggest hurdle to guidance to be the possibility of another levothyroxine competitor entering the market. Oppenheimer maintained its "perform" rating on Lannett stock.
More than 2.57 million shares of Lannett stock have traded so far today, higher than its 30-day average of about 657,000 shares daily.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
TheStreet Ratings rated this stock as a "hold" with a ratings score of C.
The company's strengths can be seen in multiple areas, such as its robust revenue growth, reasonable valuation levels and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, a generally disappointing performance in the stock itself and feeble growth in the company's earnings per share.
You can view the full analysis from the report here: LCI