Endo Health Solutions
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Endo Health Solutions met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue was unchanged. Non-GAAP earnings per share grew significantly. GAAP earnings per share dropped to a loss.
Gross margins shrank, operating margins expanded, net margins shrank.
Endo Health Solutions logged revenue of $801.1 million. The 18 analysts polled by S&P Capital IQ expected to see revenue of $807.7 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $1.62. The 17 earnings estimates compiled by S&P Capital IQ predicted $1.55 per share. Non-GAAP EPS of $1.62 for Q4 were 16% higher than the prior-year quarter's $1.40 per share. GAAP EPS were -$6.35 for Q4 compared to $0.30 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 61.6%, 170 basis points worse than the prior-year quarter. Operating margin was 31.2%, 230 basis points better than the prior-year quarter. Net margin was -89.4%, much worse than the prior-year quarter.
Next quarter's average estimate for revenue is $739.3 million. On the bottom line, the average EPS estimate is $1.15.
Next year's average estimate for revenue is $2.91 billion. The average EPS estimate is $4.52.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 423 members out of 444 rating the stock outperform, and 21 members rating it underperform. Among 144 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 139 give Endo Health Solutions a green thumbs-up, and five 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 $34.41.
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