Endo Pharmaceuticals (Nasdaq: ENDP) came in right in line with the Street's expectations last quarter, but investors are hoping that it will beat them this quarter. The company will unveil its latest earnings on Tuesday, August 9. Endo Pharmaceutical Holdings is a specialty pharmaceutical company, which is engaged in the research, development, sale, and marketing of branded and generic prescription pharmaceuticals used to treat and manage pain.

What analysts say:

  • Buy, sell, or hold?: Analysts think investors should stand firm on Endo Pharmaceuticals with 13 of 24 analysts rating it hold. Analysts don't like Endo Pharmaceuticals as much as competitor Par Pharmaceutical Companies overall. Three out of six analysts rate Par Pharmaceutical Companies a buy compared to 11 of 24 for Endo Pharmaceuticals. Analysts still rate the stock a hold, but they are a bit more wary about it compared to three months ago.
  • Revenue forecasts: On average, analysts predict $596.7 million in revenue this quarter. That would represent a rise of 50.5% from the year-ago quarter.
  • Wall Street earnings expectations: The average analyst estimate is earnings of $1.06 per share. Estimates range from $1.01 to $1.11.

What our community says:
CAPS All-Stars are solidly behind the stock, with 99.4% awarding it an "outperform" rating. The community at large backs the All-Stars, with 96.2% giving it a rating of "outperform." Fools are keen on Endo Pharmaceuticals and haven't been shy with their opinions lately, logging 168 posts in the past 30 days. Endo Pharmaceuticals has a bullish CAPS rating of five out of five stars, echoing the Fool community sentiment.

Management:
Endo Pharmaceuticals' profit has risen year over year by an average of 9.1%. Revenue has now gone up for three straight quarters. The company's gross margin shrank by 15.5 percentage points in the last quarter. Revenue rose 53.7% while cost of sales rose 146.1% to $231.6 million from a year earlier.

Now let's look at how efficient management is at running the business. Traditionally, margins represent the efficiency with which companies capture portions of sales dollars. The following table shows gross, operating, and net margins over the past four quarters.

Quarter

Q1

Q4

Q3

Q2

Gross Margin

58.7%

66.8%

69.8%

73%

Operating Margin

21.6%

29.2%

26.1%

23.6%

Net Margin

10%

18.2%

12.2%

13%

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