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Endo's (ENDP) Earnings & Revenues Surpass Estimates in Q4

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Endo International plc beats on both earnings and sales in the fourth quarter, driven by growth in its Branded Pharmaceuticals segment.

The company’s earnings of 75 cents easily beat the Zacks Consensus Estimate of 50 cents in the reported quarter but decreased from 80 cents in the year-ago quarter.

Endo International plc Price, Consensus and EPS Surprise

Endo International plc Price, Consensus and EPS Surprise

Endo International plc price-consensus-eps-surprise-chart | Endo International plc Quote

Revenues came in at $760 million in the fourth quarter, surpassing the Zacks Consensus Estimate of $654 million but was down 1% from the year-ago quarter. The decline was attributed to lower Generic Pharmaceuticals segment’s revenues.

Quarterly Highlights

Endo has four reportable business segments — Branded Pharmaceuticals, Generic Pharmaceuticals, Sterile Injectables and International Pharmaceuticals.

Branded Pharmaceuticals revenues were $224.5 million compared to $225.5 million in the year-ago quarter. Within the segment, Specialty Products revenues increased 4% to $154 million. Sales of Xiaflex increased 4% to $105 million. However, Established Products revenues decreased 8% to $71 million.

Sterile Injectables revenues came in at $332 million, up 16% year over year primarily driven by higher Vasostrict revenues.

Generic Pharmaceuticals reported sales of $180 million in the quarter, down 20% due to continued competitive pressures on certain key products.

International Pharmaceuticals revenues came in at $23 million, down 18% year over year.

2020 Results

Revenues in 2020 came in at $2.9 billion, declining slightly from $2.91 billion in 2019 but easily beating the Zacks Consensus Estimate of $2.80 billion.

Earnings per share of $2.87 grew from $2.66 in 2019 and easily beat the Zacks Consensus Estimate of $2.60 per share.

2021 Guidance

Endo expects revenues of $620-$680 million and earnings per share of $0.40-$0.50 in the first quarter. Revenues for 2021 are projected to be $2.55-$2.79 billion. Adjusted earnings per share are now estimated to be $1.80-$2.30.

Our Take

Endo reported better-than-expected results for the fourth quarter as the Branded Pharmaceuticals segment continues to maintain momentum.

Shares of Endo have gained 29.6% in the year so far against the industry’s 1.7% growth.

The company’s efforts to revive its business are encouraging. The acquisition of BioSpecifics Technologies Corp. will fuel growth.  Last year, the FDA approved QWO (collagenase clostridium histolyticum-aaes) for the treatment of moderate-to-severe cellulite in the buttocks of adult women (anticipated launch in spring). This should strengthen the company’s portfolio.

Earlier, Endo also announced a fill-finish manufacturing and services agreement for Novavax's (NVAX - Free Report) COVID-19 vaccine candidate, NVX-CoV2373.
Its efforts to optimize operations and increase overall efficiency should aid the bottom line as well.

Zacks Rank & Stocks to Consider

Endo currently carries a Zacks Rank # 3 (Hold).

A couple of better-ranked stocks in the healthcare space are Repligen (RGEN - Free Report) and Dynavax Technologies Corporation (DVAX - Free Report) , both carrying a Zacks Rank #2 (Buy), presently. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Repligen’s earnings per share estimates have moved up from $1.63 to $1.72 for 2021 in the past 90 days.

Dynavax loss per share estimates for 2021 have narrowed to 17 cents from 45 cents in the past 30 days.

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