Back to top

Analyst Blog

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

Lannett Company, Inc. (LCI - Snapshot Report) reported second quarter fiscal 2013 earnings of 10 cents per share, above the Zacks Consensus Estimate of a loss of 3 cents and the year-ago earnings of 2 cents per share. Earnings were up year over year primarily due to higher revenues.

Lannett’s revenues in the reported quarter increased 32% year over year to $36.6 million. Revenues in the second quarter were above the Zacks Consensus Estimate of $33 million. Net sales during the quarter were up primarily due to increased sales in the company’s thyroid deficiency category.

Quarter in Details

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

The thyroid deficiency category was the largest contributor during the quarter, bringing in $14.5 million, or 40% of the company’s total net sales. Thyroid deficiency was followed by revenues from cardiovascular and pain management, which contributed $7.3 million (20% of net sales) and $4.2 million (12% of net sales) respectively.

Lannett reported research and development (R&D) expenses of $3.6 million during the quarter, up 42.1% year over year. The increase in R&D expenses during the quarter was primarily attributable to higher expenses related to pipeline development.

Selling, general and administrative (SG&A) expenses in the quarter came in at $5.2 million, up 16.7% year over year due to higher employee related costs.

Fiscal 2013 Outlook Upped

Apart from releasing its financial results, Lannett also revised its guidance for fiscal 2013. The company raised its fiscal 2013 net sales guidance to the range of $140–$142 million from the previous range of $132–$136 million. The Zacks Consensus Estimate of $139 million is the company’s new guidance range.

Lannett also revised its R&D and SG&A expenses guidance. The company now expects R&D expenses to be within $17 million and $18 million (previous: $18–$20 million) and SG&A expense to be in the range of $24–$25 million (previous range: $21–$23 million).

Lannett currently carries a Zacks Rank #1 (Strong Buy). Other players in the generic market, such as Pernix Therapeutics Holdings, Inc. and Mylan Inc. (MYL - Analyst Report) carry a Zacks Rank #2 (Buy). Meanwhile, biopharma stock, Targacept Inc. (TRGT - Snapshot Report) has a Zacks Rank #1 (Strong Buy).

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

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
DIXIE GRP IN DXYN 15.84 +7.90%
BOFI HLDG IN BOFI 85.30 +4.97%
RAMBUS INC RMBS 12.31 +4.41%
VIPSHOP HOLD VIPS 148.73 +4.35%
NETFLIX INC NFLX 345.74 +4.32%