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Dr. Reddy's (RDY) Q3 Earnings and Revenues Surpass Estimates
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Dr. Reddy's Laboratories Limited (RDY - Free Report) reported third-quarter fiscal 2024 earnings of 99 cents per American Depositary Share (ADS), which beat the Zacks Consensus Estimate of 87 cents per ADS. In the year-ago quarter, the company reported earnings of 90 cents per ADS.
In third-quarter fiscal 2024, revenues grew 7% year over year to $867 million, surpassing the Zacks Consensus Estimate of $828 million. The year-over-year improvement was primarily driven by growth in core businesses in North America and Europe.
Shares of the company have gained 33.7% in the past year compared with the industry’s 22.8% growth.
Image Source: Zacks Investment Research
Quarter in Detail
Dr. Reddy’s reports revenues under three segments: Global Generics, Pharmaceutical Services & Active Ingredients (PSAI) and Others.
Global Generics revenues were INR 63.1 billion, up 7% year over year, in the fiscal third quarter. The rise was primarily driven by new product launches and increased volumes of the company’s existing core products, partially offset by price erosion in certain markets.
During the reported quarter, Dr. Reddy’s launched four new products in the North America region, of which two were launched in the United States.
As of Dec 31, cumulatively, 79 generic filings were pending approval from the FDA (75 abbreviated new drug applications and four new drug applications). Of these 79 pending filings, 41 are Para IVs and 21 have first-to-file status.
PSAI revenues were INR 7.8 billion, up 1% from the year-ago quarter. The improvement was fueled by revenues from new products and favorable forex rates, partly offset by price erosion and low business volumes.
Revenues in the Others segment came in at INR 1.2 billion, up 73% year over year.
Research and development expenses jumped 15% year over year to $67 million, driven by increased spending in ongoing clinical studies on differentiated assets and other developmental efforts. Dr. Reddy’s is focused on building a global pipeline of new products across its markets for both small molecules and biosimilars.
Selling, general and administrative expenses were $243 million, up 12% year over year, primarily owing to investments in business growth and other initiatives.
Dr. Reddy's Laboratories Ltd Price, Consensus and EPS Surprise
In the past 30 days, the Zacks Consensus Estimate for Puma Biotech’s 2023 earnings per share (EPS) has remained constant at 73 cents. During the same time frame, the consensus estimate for Puma Biotech’s 2024 EPS has remained constant at 69 cents. Over the past year, shares of PBYI have gained 7.6%.
PBYI beat estimates in three of the last four quarters while missing on one occasion, delivering a four-quarter average earnings surprise of 76.55%.
In the past 30 days, the Zacks Consensus Estimate for Kodiak’s 2023 loss per share has remained constant at $4.80. During the same period, the consensus estimate for Kodiak’s 2024 loss per share has narrowed from $3.69 to $3.68. Over the past year, shares of KOD have lost 52.7%.
KOD beat estimates in two of the trailing four quarters and missed on the other two occasions, delivering an average earnings surprise of 4.33%.
In the past 30 days, the Zacks Consensus Estimate for Journey Medical’s 2023 loss per share has remained constant at 16 cents. During the same period, the consensus estimate for Journey Medical’s 2024 loss per share has remained constant at 69 cents. Over the past year, shares of DERM have skyrocketed 116.5%.
DERM beat estimates in one of the trailing four quarters and missed on the other three occasions, delivering an average earnings surprise of 118.25%.
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Dr. Reddy's (RDY) Q3 Earnings and Revenues Surpass Estimates
Dr. Reddy's Laboratories Limited (RDY - Free Report) reported third-quarter fiscal 2024 earnings of 99 cents per American Depositary Share (ADS), which beat the Zacks Consensus Estimate of 87 cents per ADS. In the year-ago quarter, the company reported earnings of 90 cents per ADS.
In third-quarter fiscal 2024, revenues grew 7% year over year to $867 million, surpassing the Zacks Consensus Estimate of $828 million. The year-over-year improvement was primarily driven by growth in core businesses in North America and Europe.
Shares of the company have gained 33.7% in the past year compared with the industry’s 22.8% growth.
Image Source: Zacks Investment Research
Quarter in Detail
Dr. Reddy’s reports revenues under three segments: Global Generics, Pharmaceutical Services & Active Ingredients (PSAI) and Others.
Global Generics revenues were INR 63.1 billion, up 7% year over year, in the fiscal third quarter. The rise was primarily driven by new product launches and increased volumes of the company’s existing core products, partially offset by price erosion in certain markets.
During the reported quarter, Dr. Reddy’s launched four new products in the North America region, of which two were launched in the United States.
As of Dec 31, cumulatively, 79 generic filings were pending approval from the FDA (75 abbreviated new drug applications and four new drug applications). Of these 79 pending filings, 41 are Para IVs and 21 have first-to-file status.
PSAI revenues were INR 7.8 billion, up 1% from the year-ago quarter. The improvement was fueled by revenues from new products and favorable forex rates, partly offset by price erosion and low business volumes.
Revenues in the Others segment came in at INR 1.2 billion, up 73% year over year.
Research and development expenses jumped 15% year over year to $67 million, driven by increased spending in ongoing clinical studies on differentiated assets and other developmental efforts. Dr. Reddy’s is focused on building a global pipeline of new products across its markets for both small molecules and biosimilars.
Selling, general and administrative expenses were $243 million, up 12% year over year, primarily owing to investments in business growth and other initiatives.
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
Zacks Rank and Stocks to Consider
Dr. Reddy’s currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the drug/biotech industry are Puma Biotechnology, Inc. (PBYI - Free Report) , Kodiak Sciences (KOD - Free Report) and Journey Medical (DERM - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 30 days, the Zacks Consensus Estimate for Puma Biotech’s 2023 earnings per share (EPS) has remained constant at 73 cents. During the same time frame, the consensus estimate for Puma Biotech’s 2024 EPS has remained constant at 69 cents. Over the past year, shares of PBYI have gained 7.6%.
PBYI beat estimates in three of the last four quarters while missing on one occasion, delivering a four-quarter average earnings surprise of 76.55%.
In the past 30 days, the Zacks Consensus Estimate for Kodiak’s 2023 loss per share has remained constant at $4.80. During the same period, the consensus estimate for Kodiak’s 2024 loss per share has narrowed from $3.69 to $3.68. Over the past year, shares of KOD have lost 52.7%.
KOD beat estimates in two of the trailing four quarters and missed on the other two occasions, delivering an average earnings surprise of 4.33%.
In the past 30 days, the Zacks Consensus Estimate for Journey Medical’s 2023 loss per share has remained constant at 16 cents. During the same period, the consensus estimate for Journey Medical’s 2024 loss per share has remained constant at 69 cents. Over the past year, shares of DERM have skyrocketed 116.5%.
DERM beat estimates in one of the trailing four quarters and missed on the other three occasions, delivering an average earnings surprise of 118.25%.