Endo Health Solutions
The 10-second takeaway
For the quarter ended June 30 (Q2), Endo Health Solutions beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share shrank significantly.
Gross margins increased, operating margins increased, net margins contracted.
Endo Health Solutions tallied revenue of $785.2 million. The 20 analysts polled by S&P Capital IQ predicted net sales of $772.6 million on the same basis. GAAP reported sales were 29% higher than the prior-year quarter's $607.6 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.27. The 23 earnings estimates compiled by S&P Capital IQ averaged $1.19 per share. GAAP EPS of $0.08 for Q2 were 82% lower than the prior-year quarter's $0.44 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 62.5%, 150 basis points better than the prior-year quarter. Operating margin was 26.9%, 190 basis points better than the prior-year quarter. Net margin was 1.2%, 780 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $823.5 million. On the bottom line, the average EPS estimate is $1.37.
Next year's average estimate for revenue is $3.17 billion. The average EPS estimate is $5.01.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 427 members out of 446 rating the stock outperform, and 19 members rating it underperform. Among 133 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 131 give Endo Health Solutions a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Endo Health Solutions is outperform, with an average price target of $43.55.
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