Back to top

Analyst Blog

Lannett Company, Inc. (LCI - Snapshot Report) reported fourth quarter fiscal 2013 (ended Jun 30, 2013) earnings of 12 cents per share, above the Zacks Consensus Estimate of 7 cents and the year-ago earnings of 5 cents per share. Earnings were up year over year primarily due to higher revenues.

Lannett’s revenues in the reported quarter increased 13% year over year to $40.2 million. Revenues in the fourth quarter were above the Zacks Consensus Estimate of $38 million. Net sales during the quarter were up primarily due to increased sales in the company’s thyroid deficiency category.

Quarterly Highlights

Lannett’s revenues during the fourth quarter of fiscal 2013 consisted of sales from thyroid deficiency, cardiovascular, pain management, antibiotic, gallstone, obesity, migraine and glaucoma categories among others.

Lannett reported research and development (R&D) expenses of $3.7 million during the quarter, down 7.7% year over year. Selling, general and administrative (SG&A) expenses in the quarter came in at $5.8 million, up 7.9% year over year due to higher employee related costs.

Fiscal Full Year Results

Lannett reported full year fiscal 2013 earnings of 43 cents per share, above the Zacks Consensus Estimate of a loss of 41 cents and the year-ago earnings of 14 cents per share. Earnings during the fiscal year were up primarily due to higher revenues.

Lannett’s revenues in fiscal 2013 increased 22.8% year over year to $151.1 million. Revenues were above the Zacks Consensus Estimate of $149 million. Net revenues during fiscal 2013 were up primarily due to increased sales in the company’s thyroid deficiency category.

The thyroid deficiency category was the largest contributor during the year, bringing in $58 million (38% of the company’s total net sales). Thyroid deficiency was followed by revenues from cardiovascular and pain management, which contributed $25.9 million (17% of net sales) and $21.2 million (14% of net sales), respectively.

Fiscal 2014 Outlook

Apart from releasing its financial results, Lannett also announced its guidance for fiscal 2014. The company expects fiscal 2014 net sales in the range of $181–$186 million. The pre-earnings Zacks Consensus Estimate of $166 million is however below the company’s guidance range.

Lannett’s R&D and SG&A expenses are expected in the range of $24 million to $26 million and $28 to $30 million, respectively.

Lannett also expects its first quarter fiscal 2014 results to be at par with the fourth quarter results. Moreover, results are expected to improve sequentially thereafter.

Lannett currently carries a Zacks Rank #3 (Hold). Meanwhile, other companies like Actelion Ltd. (ALIOF), Biogen Idec Inc. (BIIB - Analyst Report) and Gilead Sciences Inc. (GILD - Analyst Report) look better positioned with a Zacks Rank #1 (Strong Buy).

Please login to Zacks.com or register to post a comment.