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Dr. Reddy's (RDY) Earnings and Revenues Improve Y/Y in Q1
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Dr. Reddy's Laboratories Ltd. (RDY - Free Report) reported first-quarter fiscal 2019 earnings, per American Depositary Share (ADS), of 40 cents per share, up from 5 cents earned in the year-ago quarter. Increased revenues and decline in expenses led to the bottom-line growth.
Moreover, revenues increased 12.2% year over year to $543 million. Revenues also surpassed the Zacks Consensus Estimate of $542 million.
Year to date, shares of the company have declined 16.9% compared with the industry’s fall of 3.7%.
Quarter in Detail
Dr. Reddy’s reported revenues under three segments — Global Generics, Pharmaceutical Services & Active Ingredients (“PSAI”), and Proprietary Products and Others.
Global Generics revenues increased by about 5.3% year over year to $447.5 million during the first quarter. The growth was led by contributions from Emerging Markets, India and launch of gSuboxone in the United States.
PSAI revenues were $79 million, up 9.7% from the year-ago quarter.
Revenues at the Proprietary Products and Others segment came in at $17 million, up 4.2% from the year-ago quarter.
Further, research and development expenses were down 17.6% year over year to $61 million.
Selling, general and administrative expenses were $177 million, up 2.9% year over year.
As of Jun 30, 2018, Dr. Reddy’s has 112 generic filings (109 abbreviated New Drug Applications [ANDAs] and three new drug applications) that are pending for the FDA approval. Of these 109 ANDAs, 61 were Para IV filings and 30 have first-to-file status.
Our Take
In first-quarter fiscal 2019, Dr. Reddy’s top and bottom lines registered year-over-year growth, aided by the launch of gSuboxone. The company’s focus on operational efficiencies helped in significantly improving its margin profile. However, the company expects to experience price erosion in the North America Generics market. The European market is also witnessing a decline due to higher price erosion in some of the key molecules.
Dr. Reddy's Laboratories Ltd Price, Consensus and EPS Surprise
Allergan’s earnings per share estimates have moved up from $16.04 to $16.09 for 2018 and from $16.73 to $16.76 for 2019 over the past 30 days. The company delivered a positive earnings surprise in all the trailing four quarters with an average beat of 4.41%. The stock has rallied 8.5% so far this year.
Axogen’s loss per share estimates have narrowed from 18 cents to 13 cents for 2018 over the past 60 days. The company came up with a positive earnings surprise in three of the trailing four quarters with an average beat of 18.06%. The company’s shares have rallied 92.2% year to date.
Teva’s earnings per share estimates have moved north from $2.63 to $2.69 for 2018 and from $2.88 to $2.89 for 2019 over the past 60 days. The company pulled off a positive surprise in two of the last four quarters with an average beat of 10.05%. The stock has soared 25% so far this year.
5 Medical Stocks to Buy Now
Zacks names 5 companies poised to ride a medical breakthrough that is targeting cures for leukemia, AIDS, muscular dystrophy, hemophilia, and other conditions. New products in this field are already generating substantial revenue and even more wondrous treatments are in the pipeline. Early investors could realize exceptional profits.
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Dr. Reddy's (RDY) Earnings and Revenues Improve Y/Y in Q1
Dr. Reddy's Laboratories Ltd. (RDY - Free Report) reported first-quarter fiscal 2019 earnings, per American Depositary Share (ADS), of 40 cents per share, up from 5 cents earned in the year-ago quarter. Increased revenues and decline in expenses led to the bottom-line growth.
Moreover, revenues increased 12.2% year over year to $543 million. Revenues also surpassed the Zacks Consensus Estimate of $542 million.
Year to date, shares of the company have declined 16.9% compared with the industry’s fall of 3.7%.
Quarter in Detail
Dr. Reddy’s reported revenues under three segments — Global Generics, Pharmaceutical Services & Active Ingredients (“PSAI”), and Proprietary Products and Others.
Global Generics revenues increased by about 5.3% year over year to $447.5 million during the first quarter. The growth was led by contributions from Emerging Markets, India and launch of gSuboxone in the United States.
PSAI revenues were $79 million, up 9.7% from the year-ago quarter.
Revenues at the Proprietary Products and Others segment came in at $17 million, up 4.2% from the year-ago quarter.
Further, research and development expenses were down 17.6% year over year to $61 million.
Selling, general and administrative expenses were $177 million, up 2.9% year over year.
As of Jun 30, 2018, Dr. Reddy’s has 112 generic filings (109 abbreviated New Drug Applications [ANDAs] and three new drug applications) that are pending for the FDA approval. Of these 109 ANDAs, 61 were Para IV filings and 30 have first-to-file status.
Our Take
In first-quarter fiscal 2019, Dr. Reddy’s top and bottom lines registered year-over-year growth, aided by the launch of gSuboxone. The company’s focus on operational efficiencies helped in significantly improving its margin profile. However, the company expects to experience price erosion in the North America Generics market. The European market is also witnessing a decline due to higher price erosion in some of the key molecules.
Dr. Reddy's Laboratories Ltd Price, Consensus and EPS Surprise
Dr. Reddy's Laboratories Ltd Price, Consensus and EPS Surprise | Dr. Reddy's Laboratories Ltd Quote
Zacks Rank & Stocks to Consider
Dr. Reddy’s has a Zacks Rank #5 (Strong Buy).
Some better-ranked stocks from the same space are Allergan plc , Axogen Inc. (AXGN - Free Report) and Teva Pharmaceutical Industries Ltd. (TEVA - Free Report) . All of them carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Allergan’s earnings per share estimates have moved up from $16.04 to $16.09 for 2018 and from $16.73 to $16.76 for 2019 over the past 30 days. The company delivered a positive earnings surprise in all the trailing four quarters with an average beat of 4.41%. The stock has rallied 8.5% so far this year.
Axogen’s loss per share estimates have narrowed from 18 cents to 13 cents for 2018 over the past 60 days. The company came up with a positive earnings surprise in three of the trailing four quarters with an average beat of 18.06%. The company’s shares have rallied 92.2% year to date.
Teva’s earnings per share estimates have moved north from $2.63 to $2.69 for 2018 and from $2.88 to $2.89 for 2019 over the past 60 days. The company pulled off a positive surprise in two of the last four quarters with an average beat of 10.05%. The stock has soared 25% so far this year.
5 Medical Stocks to Buy Now
Zacks names 5 companies poised to ride a medical breakthrough that is targeting cures for leukemia, AIDS, muscular dystrophy, hemophilia, and other conditions. New products in this field are already generating substantial revenue and even more wondrous treatments are in the pipeline. Early investors could realize exceptional profits.
Click here to see the 5 stocks >>