Endo Health Solutions
The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Endo Health Solutions missed estimates on revenues and beat slightly on earnings per share.
Compared to the prior-year quarter, revenue shrank slightly and GAAP earnings per share grew significantly.
Margins grew across the board.
Endo Health Solutions booked revenue of $750.5 million. The 23 analysts polled by S&P Capital IQ expected a top line of $788.9 million on the same basis. GAAP reported sales were 1.1% lower than the prior-year quarter's $759.1 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 $1.28. The 24 earnings estimates compiled by S&P Capital IQ predicted $1.26 per share. GAAP EPS of $0.45 for Q3 were 32% higher than the prior-year quarter's $0.34 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 60.8%, 60 basis points better than the prior-year quarter. Operating margin was 26.2%, 260 basis points better than the prior-year quarter. Net margin was 7.2%, 180 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $838.4 million. On the bottom line, the average EPS estimate is $1.64.
Next year's average estimate for revenue is $3.10 billion. The average EPS estimate is $5.03.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 427 members out of 445 rating the stock outperform, and 18 members rating it underperform. Among 134 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 131 give Endo Health Solutions a green thumbs-up, and three 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 $40.89.
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