Endo International PLC (NASDAQ: ENDP) is having an overwhelmingly strong start to the trading session this morning after the company released its earnings report for the first quarter, beating expectations on both the top and bottom line. Of course, the news excited investors and the stock is making a run for the top as a result. Today, we’ll talk about:
- The earnings report;
- what we’re seeing from ENDP as a result;
- and what we’ll be watching for ahead.
ENDP Blows Away Earnings Expectations
As mentioned above, Endo International is having an incredibly strong start to the trading session this morning after the company released its earnings report for the first quarter. Here’s what we saw from the report:
- Earnings – In terms of earnings, ENDP did overwhelmingly well. During the quarter, the company reported a loss in the amount of $505.5 million, which works out to $2.26 per share. Adjusted earnings per share from continuing operations came in at $0.67. This figure blew away analyst expectations of $0.55 per share in adjusted earnings.
- Revenue – When it comes to revenue, the company definitely did not disappoint. During the quarter, analysts expected that the company would generate revenue in the amount of $691.9 million. However, the company actually reported revenue in the amount of $700.5 million, once again beating expectations.
- Guidance – During the earnings report, the company reaffirmed its guidance for the full 2018 year. In terms of revenue, ENDP is expecting to generate between $2.6 billion and $2.8 billion. Earnings are expected to come in between $2.15 and $2.55 per share.
In a statement, Paul Campanelli, President and CEO at ENDP, had the following to offer:
Endo delivered strong first-quarter operating results in our core focus areas as revenue growth accelerated for both our XIAFLEX® franchise and Sterile Injectable business. We are currently on target to meet the full-year financial guidance we provided earlier this year… Importantly, we continue to execute our multi-year turnaround plan and build our portfolio for the future by advancing our CCH cellulite treatment development program with the initiation of and recruitment for two pivotal Phase 3 trials. In addition, as we recently announced, we expect to significantly enhance our Sterile Injectables pipeline through the acquisition of Somerset Therapeutics.
What We’re Seeing From The Stock
Earnings season is one of my favorite seasons of the year, and for good reason. When earnings reports are released, they tend to generate quite a bit of movement, leading to strong opportunities in the market. With the great earnings report from Endo International, it only makes sense that investors are excited, sending the stock screaming for the top. Of course, our partners at Trade Ideas were the first to alert us to the gains. At the moment (8:55), ENDP is trading at $5.98 per share after a gain of $0.36 per share or 6.41% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on ENDP. In particular, we’re interested in following the ongoing growth that we’re seeing out of the company as well as seeing if the company meets the high bar it has set for itself with regard to both earnings and revenue during the full year. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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