Endo International plc (NASDAQ: ENDP)
Endo International continues to climb in a big way today, and for a very good reason. The company reported earnings yesterday, blowing away expectations. On top of that, digging into the report we see increased spending on under-performing brands, which should increase future sales. Today, we’ll talk about what we saw from the earnings report, how the stock reacted to the news, and what we can expect to see from ENDP moving forward.
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ENDP Reports Strong Quarterly Results
As mentioned above, Endo International is having yet another strong day in the market today. One of the big reasons for the gains was the fact that the company reported incredibly strong second quarter results. Here’s what we saw in the report that came out yesterday:
- Earnings Per Share – In terms of earnings per share, ENDP did incredibly well in the second quarter. During the quarter, analysts expected to see earnings come in at $0.74 per share. However, the company actually reported second quarter earnings in the amount of $0.86 per share.
- Revenue – In terms of revenue, ENDP definitely did not disappoint. During the quarter, analysts expected that the company would generate revenue in the amount of $864.34 million. However, the company actually reported second quarter revenue at $921 million.
Along with the overwhelmingly positive earnings report, Rajiv De Silva, Endo International President and CEO, had the following to say:
“During the second quarter 2016, Endo remained focused on operational execution. We have delivered results across all of our businesses that are on track or ahead of Company expectations for the quarter and today we are affirming our full year 2016 revenue and adjusted diluted EPS financial guidance while increasing investment in Branded and Generics R&D as well as BELBUCA and XIAFLEX promotion… We also continue to build our internal team and are pleased to announce the appointment of Joseph J. Ciaffoni to President, U.S. Branded Pharmaceuticals. We look forward to continuing to execute on our corporate objectives and delivering products that improve patients’ lives while creating value for our shareholders.”
How The Stock Reacted To The News
As investors, one of the first things that we learn is that the news moves the market. Any time positive news is released with regard to a publicly-traded company, we can expect to see gains in the value of the company’s stock. In this particular case, the news that was released surrounding Endo International was overwhelmingly positive. As a result, we saw strong gains in the stock yesterday that are continuing into today’s trading session. Currently (2:00), the stock is trading at $22.10 per share after a gain of $3.90 per share (21.47%) thus far today.
What We Can Expect To See Moving Forward
Moving forward, I have a relatively mixed opinion of what we can expect to see from ENDP. In the short run, things are looking great. However, in the long run, the company will be losing exclusivity on two key generics next year. This is likely to weigh on revenue. Nonetheless, there is quite a bit to be excited about here. The company is performing better than was expected and will increase spending in order to drive further sales from key assets.
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What Do You Think?
Where do you think ENDP is headed moving forward? Join the discussion at TalkTRENDZ!
[Image Courtesy of Wikimedia]