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Dr. Reddy's (RDY) Q3 Earnings & Revenues Beat Estimates
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Dr. Reddy's Laboratories Limited (RDY - Free Report) reported third-quarter fiscal 2023 earnings of 91 cents per American Depositary Share, which beat the Zacks Consensus Estimate and our estimate of earnings of 60 cents. In the year-ago quarter, the company reported earnings of 51 cents.
In third-quarter fiscal 2023, revenues grew 27.2% year over year to $818 million, surpassing the Zacks Consensus Estimate of $769 million. Total revenues were higher than our estimate of $761.2 million in the reported quarter.
Shares of the company have decreased 4.4% in the past year compared with the industry’s decline of 12.1%.
Image Source: Zacks Investment Research
Quarter in Detail
Dr. Reddy’s reports revenues under three segments: Global Generics, Pharmaceutical Services & Active Ingredients (“PSAI”) and Proprietary Products and Others.
Global Generics revenues were INR 59.2 billion, up 33% year over year, in the fiscal third quarter. Growth was driven by new product launches, an increase in volumes of base business and favorable forex movement, offset partially due to price erosion in generic markets.
The company launched five new products (desmopressin MDV, OTC guaifenesin ER, fingolimod capsules, thiotepa injection and biorphen injection) in North America.
As of Dec 31, cumulatively, 78 generic filings were pending approval from the FDA (75 abbreviated New Drug Applications [ANDAs] and three new drug applications). Of these 78 pending filings, 41 are Para IVs and 21 have first-to-file status.
PSAI revenues were INR 7.7 billion, up 7% from the year-ago quarter, by favorable forex movement and an increase in volumes, partly offset by price erosion.
Revenues in the other segment came in at INR 701 million, down 51% year over year.
Research and development expenses were up 16% year-over-year to $58 million. The company is focused on building a global pipeline of new products across its markets.
Selling, general and administrative expenses were $217 million, up 17% year over year, primarily owing to investments in business growth.
Dr. Reddy's Laboratories Ltd Price, Consensus and EPS Surprise
Dr. Reddy’s top and bottom lines registered year-over-year growth in the third quarter driven by growth in the United States and Russian markets.
Zacks Rank & Stocks to Consider
Dr. Reddy's currently carries a Zacks Rank #3 (Hold). Some other top-ranked stocks in the biotech sector are Syndax Pharmaceuticals (SNDX - Free Report) , Vir Biotechnology (VIR - Free Report) and Dynavax Technologies (DVAX - Free Report) . While Syndax sports a Zacks Rank #1 (Strong Buy), the other two carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Over the past 60 days, loss estimates for Syndax for 2022 have narrowed to $2.48 from $2.53. Syndax also surpassed estimates in each of the trailing four quarters, with the average surprise being 95.39%.
Over the past 90 days, earnings estimates for VIR have increased to $4.61 from $3.03 for 2022. VIR also surpassed estimates in three of the trailing four quarters, with the average surprise being 3,182.4%.
Over the past 60 days, earnings estimates for Dynavax Technologies have increased to $1.93 from $1.74 for 2022. DVAX also surpassed estimates in two of the trailing four quarters, with the average surprise being 73.15%.
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Dr. Reddy's (RDY) Q3 Earnings & Revenues Beat Estimates
Dr. Reddy's Laboratories Limited (RDY - Free Report) reported third-quarter fiscal 2023 earnings of 91 cents per American Depositary Share, which beat the Zacks Consensus Estimate and our estimate of earnings of 60 cents. In the year-ago quarter, the company reported earnings of 51 cents.
In third-quarter fiscal 2023, revenues grew 27.2% year over year to $818 million, surpassing the Zacks Consensus Estimate of $769 million. Total revenues were higher than our estimate of $761.2 million in the reported quarter.
Shares of the company have decreased 4.4% in the past year compared with the industry’s decline of 12.1%.
Image Source: Zacks Investment Research
Quarter in Detail
Dr. Reddy’s reports revenues under three segments: Global Generics, Pharmaceutical Services & Active Ingredients (“PSAI”) and Proprietary Products and Others.
Global Generics revenues were INR 59.2 billion, up 33% year over year, in the fiscal third quarter. Growth was driven by new product launches, an increase in volumes of base business and favorable forex movement, offset partially due to price erosion in generic markets.
The company launched five new products (desmopressin MDV, OTC guaifenesin ER, fingolimod capsules, thiotepa injection and biorphen injection) in North America.
As of Dec 31, cumulatively, 78 generic filings were pending approval from the FDA (75 abbreviated New Drug Applications [ANDAs] and three new drug applications). Of these 78 pending filings, 41 are Para IVs and 21 have first-to-file status.
PSAI revenues were INR 7.7 billion, up 7% from the year-ago quarter, by favorable forex movement and an increase in volumes, partly offset by price erosion.
Revenues in the other segment came in at INR 701 million, down 51% year over year.
Research and development expenses were up 16% year-over-year to $58 million. The company is focused on building a global pipeline of new products across its markets.
Selling, general and administrative expenses were $217 million, up 17% year over year, primarily owing to investments in business growth.
Dr. Reddy's Laboratories Ltd Price, Consensus and EPS Surprise
Dr. Reddy's Laboratories Ltd price-consensus-eps-surprise-chart | Dr. Reddy's Laboratories Ltd Quote
Our Take
Dr. Reddy’s top and bottom lines registered year-over-year growth in the third quarter driven by growth in the United States and Russian markets.
Zacks Rank & Stocks to Consider
Dr. Reddy's currently carries a Zacks Rank #3 (Hold). Some other top-ranked stocks in the biotech sector are Syndax Pharmaceuticals (SNDX - Free Report) , Vir Biotechnology (VIR - Free Report) and Dynavax Technologies (DVAX - Free Report) . While Syndax sports a Zacks Rank #1 (Strong Buy), the other two carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Over the past 60 days, loss estimates for Syndax for 2022 have narrowed to $2.48 from $2.53. Syndax also surpassed estimates in each of the trailing four quarters, with the average surprise being 95.39%.
Over the past 90 days, earnings estimates for VIR have increased to $4.61 from $3.03 for 2022. VIR also surpassed estimates in three of the trailing four quarters, with the average surprise being 3,182.4%.
Over the past 60 days, earnings estimates for Dynavax Technologies have increased to $1.93 from $1.74 for 2022. DVAX also surpassed estimates in two of the trailing four quarters, with the average surprise being 73.15%.