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Dr. Reddy's (RDY) Q2 Earnings and Revenues Increase Y/Y
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Dr. Reddy's Laboratories Ltd. (RDY - Free Report) reported second-quarter fiscal 2020 earnings of 93 cents per share, up from 43 cents in the year-ago quarter, per American Depositary Share (ADS).
Moreover, revenues grew 26% year over year to $680 million.
Year to date, shares of the company have gained 5.7% against the industry’s decline of 1%.
Quarter in Detail
Dr. Reddy’s reported revenues under three segments — Global Generics, Pharmaceutical Services & Active Ingredients (“PSAI”), and Proprietary Products and Others.
Global Generics revenues were INR32.8 billion ($464.6 million), up 7% year over year in the fiscal second quarter. Growth was led by contributions from Europe, emerging markets and India, primarily owing to volume gains and product launches.
PSAI revenues were INR7.1 billion ($100.6 million), up 18% from the year-ago quarter.
Revenues at the Proprietary Products segment came in at INR8.09 million ($0.11 million), surging 472% year over year.
Research and development expenses were down 11% year over year to $52 million.
Selling, general and administrative expenses were $238 million, up 36% year over year.
As of Sep 30, 2019, Dr. Reddy’s had 99 generic filings (96 abbreviated New Drug Applications [ANDAs] and three new drug applications) pending FDA approval. Of these 96 ANDAs, 55 were Para IV filings and 31 have first-to-file status.
Our Take
In second-quarter fiscal 2020, Dr. Reddy’s top and bottom lines registered year-over-year growth. This was supported by strength in Europe, emerging markets and India andpickup in product launches.
However, the company expects to experience price erosion in the North America generics market which will adversely impact sales.
Dr. Reddy's Laboratories Ltd Price, Consensus and EPS Surprise
AbbVie’s earnings per share estimates have increased from $8.87 to $8.93 for 2019 and from $9.29 to $9.36 for 2020 in the past 60 days. The company delivered a positive earnings surprise in three of the trailing four quarters, the average being 1.71%.
Glaxo’s earnings per share estimates have increased from $2.89 to $3.02 for 2019 and from $2.96 to $2.99 for 2020 in the past 60 days. The company delivered a positive earnings surprise in the trailing four quarters, the average being 17.23%.
Merck’s earnings per share estimates have increased from $4.89 to $5.02 for 2019 and from $5.35 to $5.41 for 2020 over the past 60 days. The company came up with a positive earnings surprise in the trailing four quarters, the average being 12.51%.
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Dr. Reddy's (RDY) Q2 Earnings and Revenues Increase Y/Y
Dr. Reddy's Laboratories Ltd. (RDY - Free Report) reported second-quarter fiscal 2020 earnings of 93 cents per share, up from 43 cents in the year-ago quarter, per American Depositary Share (ADS).
Moreover, revenues grew 26% year over year to $680 million.
Year to date, shares of the company have gained 5.7% against the industry’s decline of 1%.
Quarter in Detail
Dr. Reddy’s reported revenues under three segments — Global Generics, Pharmaceutical Services & Active Ingredients (“PSAI”), and Proprietary Products and Others.
Global Generics revenues were INR32.8 billion ($464.6 million), up 7% year over year in the fiscal second quarter. Growth was led by contributions from Europe, emerging markets and India, primarily owing to volume gains and product launches.
PSAI revenues were INR7.1 billion ($100.6 million), up 18% from the year-ago quarter.
Revenues at the Proprietary Products segment came in at INR8.09 million ($0.11 million), surging 472% year over year.
Research and development expenses were down 11% year over year to $52 million.
Selling, general and administrative expenses were $238 million, up 36% year over year.
As of Sep 30, 2019, Dr. Reddy’s had 99 generic filings (96 abbreviated New Drug Applications [ANDAs] and three new drug applications) pending FDA approval. Of these 96 ANDAs, 55 were Para IV filings and 31 have first-to-file status.
Our Take
In second-quarter fiscal 2020, Dr. Reddy’s top and bottom lines registered year-over-year growth. This was supported by strength in Europe, emerging markets and India andpickup in product launches.
However, the company expects to experience price erosion in the North America generics market which will adversely impact sales.
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 & Stocks to Consider
Dr. Reddy’s currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks from the same space are AbbVie Inc. (ABBV - Free Report) , GlaxoSmithKline Plc. (GSK - Free Report) and Merck and Co. (MRK - Free Report) , all carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
AbbVie’s earnings per share estimates have increased from $8.87 to $8.93 for 2019 and from $9.29 to $9.36 for 2020 in the past 60 days. The company delivered a positive earnings surprise in three of the trailing four quarters, the average being 1.71%.
Glaxo’s earnings per share estimates have increased from $2.89 to $3.02 for 2019 and from $2.96 to $2.99 for 2020 in the past 60 days. The company delivered a positive earnings surprise in the trailing four quarters, the average being 17.23%.
Merck’s earnings per share estimates have increased from $4.89 to $5.02 for 2019 and from $5.35 to $5.41 for 2020 over the past 60 days. The company came up with a positive earnings surprise in the trailing four quarters, the average being 12.51%.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity. A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>