We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Endo (ENDP) Crashes 46.54% as it Looks to Restructure Debt
Read MoreHide Full Article
Share of Endo International tanked 46.54% on May 18 after a Wall Street report stated that the company has started negotiations with its lenders and senior bondholders about a possible restructuring of more than $8 billion of debt.
Endo is already in deep trouble with several litigation suits over opioid sales, and this has been an overhang on its shares for quite some time now.
It has lost 83.2% in the year so far compared with the industry's 27% decline.
Image Source: Zacks Investment Research
Earlier in the month, Endo reported first-quarter earnings of 66 cents per share, beating the Zacks Consensus Estimate of 44 cents but declining from 73 cents in the year-ago quarter. A significant increase in litigation expenses and selling, general and administrative expenses hurt the bottom line.
Revenues came in at $652 million in the first quarter, surpassing the Zacks Consensus Estimate of $641 million. However, revenues were down 9% from the year-ago quarter due to decreased revenues from its Sterile Injectables segment, partially offset by increased revenues from its Generic Pharmaceuticals segment and the Specialty Products portfolio of its Branded Pharmaceuticals segment.
Sterile Injectables’ revenues came in at $240 million, down 22% year over year on decreased Vasostrict revenues due to generic competition and lower overall demand as COVID-19-related hospitalizations decline.
Moreover, the guidance for the second quarter was disappointing due to challenging market dynamics for Vasostrict. This hurt the stock as well.
Endo provided financial guidance only for the second quarter due to uncertainties in certain key assumptions. Revenues for the quarter are projected to be $500-$525 million. Adjusted loss per share is estimated at 17 cents to 15 cents.
As of Mar 2022, the company had $1.4 billion of cash and equivalents and long-term debt of $8.0 billion.
Loss estimates for ALKS for 2022 have narrowed to 3 cents from a loss of 14 cents in the past 60 days. Alkermes surpassed estimates in all of the trailing four quarters, the average surprise being 350.48%.
Earnings estimates for Halozyme for 2022 have risen 7 cents to $2.21 in the past 60 days. Halozyme surpassed estimates in three of the trailing four quarters, the average surprise being 21.84%.
Loss estimates for GERN for 2022 have narrowed by 6 cents in the past 60 days. Geron surpassed estimates in three of the trailing four quarters, the average surprise being 1.07%.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Endo (ENDP) Crashes 46.54% as it Looks to Restructure Debt
Share of Endo International tanked 46.54% on May 18 after a Wall Street report stated that the company has started negotiations with its lenders and senior bondholders about a possible restructuring of more than $8 billion of debt.
Endo is already in deep trouble with several litigation suits over opioid sales, and this has been an overhang on its shares for quite some time now.
It has lost 83.2% in the year so far compared with the industry's 27% decline.
Image Source: Zacks Investment Research
Earlier in the month, Endo reported first-quarter earnings of 66 cents per share, beating the Zacks Consensus Estimate of 44 cents but declining from 73 cents in the year-ago quarter. A significant increase in litigation expenses and selling, general and administrative expenses hurt the bottom line.
Revenues came in at $652 million in the first quarter, surpassing the Zacks Consensus Estimate of $641 million. However, revenues were down 9% from the year-ago quarter due to decreased revenues from its Sterile Injectables segment, partially offset by increased revenues from its Generic Pharmaceuticals segment and the Specialty Products portfolio of its Branded Pharmaceuticals segment.
Sterile Injectables’ revenues came in at $240 million, down 22% year over year on decreased Vasostrict revenues due to generic competition and lower overall demand as COVID-19-related hospitalizations decline.
Moreover, the guidance for the second quarter was disappointing due to challenging market dynamics for Vasostrict. This hurt the stock as well.
Endo provided financial guidance only for the second quarter due to uncertainties in certain key assumptions. Revenues for the quarter are projected to be $500-$525 million. Adjusted loss per share is estimated at 17 cents to 15 cents.
As of Mar 2022, the company had $1.4 billion of cash and equivalents and long-term debt of $8.0 billion.
Zacks Rank & Stocks to Consider
Endo currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks are Alkermes (ALKS - Free Report) , Halozyme (HALO - Free Report) and Geron Corporation (GERN - Free Report) . While Alkermes sports a Zacks Rank #1 (Strong Buy), Geron and HALO have a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Loss estimates for ALKS for 2022 have narrowed to 3 cents from a loss of 14 cents in the past 60 days. Alkermes surpassed estimates in all of the trailing four quarters, the average surprise being 350.48%.
Earnings estimates for Halozyme for 2022 have risen 7 cents to $2.21 in the past 60 days. Halozyme surpassed estimates in three of the trailing four quarters, the average surprise being 21.84%.
Loss estimates for GERN for 2022 have narrowed by 6 cents in the past 60 days. Geron surpassed estimates in three of the trailing four quarters, the average surprise being 1.07%.