Endo Pharmaceuticals Holdings Beats on EPS, but GAAP Results Lag

Endo Pharmaceuticals Holdings (Nasdaq: ENDP  ) reported earnings on Feb. 24. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Endo Pharmaceuticals Holdings met expectations on revenues and beat expectations on earnings per share.

Compared with the prior-year quarter, revenue increased significantly and GAAP earnings per share contracted significantly.

Margins contracted across the board.

Revenue details
Endo Pharmaceuticals Holdings booked revenue of $803.4 million. The 19 analysts polled by S&P Capital IQ hoped for a top line of $804.2 million on the same basis. GAAP reported sales were 57% higher than the prior-year quarter's $511.2 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Non-GAAP EPS came in at $1.40. The 22 earnings estimates compiled by S&P Capital IQ predicted $1.32 per share on the same basis. GAAP EPS of $0.30 for Q4 were 61% lower than the prior-year quarter's $0.77 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 63.3%, 350 basis points worse than the prior-year quarter. Operating margin was 26.2%, 490 basis points worse than the prior-year quarter. Net margin was 4.6%, 1,360 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $743.2 million. On the bottom line, the average EPS estimate is $1.10.

Next year's average estimate for revenue is $3.22 billion. The average EPS estimate is $5.44.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 434 members out of 454 rating the stock outperform, and 20 members rating it underperform. Among 164 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 163 give Endo Pharmaceuticals Holdings a green thumbs-up, and one give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Endo Pharmaceuticals Holdings is outperform, with an average price target of $44.78.

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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings. He is the co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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