Endo Health falls after cutting profit estimate
CHADDS FORD, Pa. (AP) — Shares of Endo Health Solutions Inc. fell Monday as the company cut its full-year earnings and revenue outlook after reporting disappointing pharmaceutical sales in the third quarter.
Over the last few years Endo has expanded from a drug company into a larger conglomerate that sells both branded and generic drugs, develops medical devices, and makes urology products and software used in managing medical practices.
The company reported a 1 percent decline in total revenue for the third quarter to $750.5 million in the period ended Sept. 30. That was significantly below the $789.4 million predicted by Wall Street analysts, according to FactSet. Endo reported a 2 percent decrease in branded pharmaceutical sales to $417 million, in part due to supply disruption of the company's painkiller Opana ER.
The company's net income rose 32 percent to $53.8 million, or 45 cents per share, for the quarter. Those results included a charge of $83 million from the settlement of a lawsuit with Watson Pharmaceuticals related to its biggest-selling drug, the Lidoderm pain patch, partially offset by a benefit of $46 million.
Excluding that and other one-time events, the company would have earned $1.28 per share. That was slightly ahead of Wall Street expectations calling for earnings of $1.26 per share.
Despite that performance, company shares declined as management lowered their performance expectations for full-year 2012. Endo Health Solutions fell $2.10, or 7.2 percent, to $27.13 in afternoon trading.
The company cut its full-year earnings per share guidance to $5 to $5.10 per share, down from $5 to $5.20, excluding a series of one-time costs like amortization, acquisition costs, payments to the company's partners, and impairment charges. The company expects revenue of about $3.05 billion, down from previous estimates between $3.05 billion and $3.18 billion.
Analysts expect earnings per share of $5.03 and revenue of $3.1 billion, on average.