Endo International plc’s fourth-quarter earnings of 84 cents per share beat the Zacks Consensus Estimate of 70 cents and increased from 75 cents in the year-ago quarter.

Revenues came in at $789 million in the fourth quarter, surpassing the Zacks Consensus Estimate of $743 million.  Revenues rose 4% from the year-ago quarter due to increased revenues from the Branded, Generic and International Pharmaceuticals segments.

Endo has lost 58.6% in the past year compared with the industry’s 31% decline.

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Quarterly Highlights

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

Branded Pharmaceuticals’ revenues were $228 million compared with $225 million in the year-ago quarter. Within the segment, Specialty Products revenues increased 4% to $161 million. Sales of Xiaflex increased 14% to $120 million, driven by higher net price and improving patient demand compared to the prior year. However, Established Products revenues decreased 5% to $67 million due to competitive pressure.

Sterile Injectables’ revenues came in at $319 million, down 4% year over year due to competitive pressure on certain products, partially offset by higher Vasostrict revenues primarily due to hospitalizations associated with COVID-19.

Generic Pharmaceuticals reported sales of $218 million in the quarter, up 21% due to additional revenues from the 2021 product launches, including lubiprostone capsules, the first authorized generic of Amitiza and varenicline tablets, the only FDA-approved generic version of Chantix.

International Pharmaceuticals revenues came in at $24 million, up from $23 million.

2021 Results

Revenues increased 3% in 2021 to $3 billion. Earnings per share came in at $3.03 compared with $2.87 per share in 2020.

Q1 2022 Guidance

Endo provided financial guidance only for the first quarter due to uncertainties in certain key assumptions, including the timing and impact of Vasostrict generic competition and the rate and extent to which the market for specialty product office-based procedures recovers from the current COVID-19 driven challenges.

Revenues for the first quarter are projected within $595-$635 million. Adjusted earnings per share are estimated to be in the range of 35 cents to 45 cents.

Our Take

Endo reported better-than-expected results in the fourth quarter The company’s efforts to revive its business are encouraging.  However, Vasostrict faces generic competition, and the ongoing COVID-19 driven market conditions negatively impact specialty product office-based procedures.

Zacks Rank & Stocks to Consider

Endo currently carries a Zacks Rank #5 (Strong Sell).

Some better-ranked stocks in the healthcare space are Axsome Therapeutics, Inc. (AXSM Quick QuoteAXSM - Free Report) , Dynavax Technologies Corporation (DVAX Quick QuoteDVAX - Free Report) and Vertex Pharmaceuticals (VRTX Quick QuoteVRTX - Free Report) , all carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Axsome Therapeutics’ loss per share estimates has narrowed to $3.64 from $3.66 for 2022 over the past 60 days.

Earnings of Axsome Therapeutics have surpassed estimates in three of the trailing four quarters and missed the same on the other occasion.

Dynavax’s earnings estimates have increased to $1.18 from $1.07 for 2022 over the past 60 days. The stock has rallied 37.8% in the past year.

Earnings of Dynavax have surpassed estimates in each of the trailing four quarters.

Vertex’ Pharmaceuticals earnings per share estimates have increased to $15.31 from $13.85 for 2022 over the past 60 days.

The consensus estimate for 2022 earnings for Vertex has increased $1.01 over the past 30 days to $14.33. Shares of VRTX gained 9.4% in the past year.