Sunday, October 30, 2011

Endo Pharamceuticals (ENDP) Q3 Results

Endo Pharmaceuticals reported earnings for the third quarter, and beat analyst expectations for both top-line revenues and EPS. ENDP revenues increased 71% to $759 million, driven by organic growth in the branded drugs division and growth in the generics division. Opana ER, Voltaren Gel, and Lidoderm grew 66%, 35%, and 3% respectively, for a total growth in the branded division of 17%. The company continues to effectively integrate acquired companies such as Qualitest, which provided a boon to the generic division and helped grow generic revenues by 17%. The combination of organic growth in the branded division and integration of the generic division has led to impressive sales growth and top-line revenues which exceeded analyst expectations by $9 million.

Operating expenses grew to $271 million from $162 million after acquisitions, but expenses as a percentage of sales remained flat. The company saw $48 million in net income, and EPS of $1.25, representing EPS growth of 45%. Additionally, the firm continues to generate strong operating cash flows, which it will use to pay off debt. The firm continues to perform strongly, as had reaffirmed guidance of $2.8 billion in sales and $4.65 in EPS for the fiscal year. The firm also sees a smooth integration of AMS and Qualitest, and believes the firm will be able to capitalize on more synergies than initially thought.

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