Endo's (ENDP) Earnings & Revenues Surpass Estimates in Q1

Endo International plc ENDP beats on both earnings and sales in the first quarter as its Branded Pharmaceuticals segment returned to growth, driven by strong demand for Xiaflex.

The company’s earnings of 73 cents easily beat the Zacks Consensus Estimate of 48 cents in the reported quarter but decreased from 95 cents in the year-ago quarter.

Revenues came in at $717.9 million in the first quarter, surpassing the Zacks Consensus Estimate of $670.47 million but was down 12% from the year-ago quarter due to decreased Generic Pharmaceuticals and Sterile Injectables segment revenues.

Endo International plc Price, Consensus and EPS Surprise

Endo International plc Price, Consensus and EPS Surprise

Endo International plc price-consensus-eps-surprise-chart | Endo International plc Quote

Quarterly Highlights

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

Branded Pharmaceuticals revenues were $206.6 million compared to $204.1 million in the year-ago quarter. Within the segment, Specialty Products revenues increased 7% to $143.3 million. Sales of Xiaflex increased 7% to $95.3 million. However, Established Products revenues decreased 9% to $63 million.

Sterile Injectables revenues came in at $308.7 million, down 8% year over year due to ongoing generic competition for certain products, partially offset by increased Vasostrict revenues.

Generic Pharmaceuticals reported sales of $181 million in the quarter, down 28% due to continued competitive pressures on certain key products and the impact of COVID-19-related accelerated prescription fulfillment in the year-ago quarter.

International Pharmaceuticals revenues came in at $21.6 million, down 24% year over year due to continued competitive pressures on certain key products.

2021 Guidance Updated

Revenues for 2021 are projected to be $2.65-$2.79 billion compared with the earlier projected range of $2.55-$2.79 billion. Adjusted earnings per share are now estimated to be $1.95-$2.30 (previous estimate: $1.80-$2.30 billion).

Our Take

Endo reported better-than-expected results for the first quarter as the Branded Pharmaceuticals segment continues to maintain momentum. The company’s efforts to revive its business are encouraging. Last year, the FDA approved QWO (collagenase clostridium histolyticum-aaes) for the treatment of moderate-to-severe cellulite in the buttocks of adult women (anticipated launch in spring). QWO has been launched and the initial uptake seems encouraging.

Shares of Endo have lost 24.4% in the year so far compared with the industry’s 10.9% decline.

Earlier, the company also announced a fill-finish manufacturing and services agreement for Novavax's NVAX COVID-19 vaccine candidate, NVX-CoV2373.

Zacks Rank & A Stock to Consider

Endo currently carries a Zacks Rank # 4 (Sell).

A couple of better-ranked stocks in the healthcare sector include Corcept Therapeutics CORT and Repligen Corporation RGEN. While Repligen carries a Zacks Rank #1 (Strong Buy), Corcept carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Corcept’s earnings estimates have moved up 8 cents for 2021 in the past 90 days.

Repligen’s earnings estimates have increased 25 cents for 2021 in the past 90 days.

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Endo International plc (ENDP) : Free Stock Analysis Report

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