Endo (ENDP) plummets 46.54% as it seeks to restructure debt – May 19, 2022
Sharing of international endo (ENDP – Free Report) fell 46.54% on May 18 after a Wall Street report said the company entered negotiations with its lenders and senior bondholders over a possible $8 billion-plus restructuring. dollars of debt.
Endo is already in deep trouble with several lawsuits relating to the sale of opioids, and that has been an overhang for its actions for some time now.
It has lost 83.2% in the year so far, against an industry drop of 27%.
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Earlier in the month, Endo reported first-quarter earnings of 66 cents per share, beating Zacks’ consensus estimate of 44 cents, but down from 73 cents in the year-ago quarter. A significant increase in litigation costs and selling, general and administrative expenses hurt net income.
Revenue was $652 million in the first quarter, beating Zacks’ consensus estimate of $641 million. However, revenue decreased 9% from the prior year quarter due to lower revenue from its sterile injectables segment, partially offset by increased revenue from its generic pharmaceuticals segment and portfolio of specialty products in its branded pharmaceuticals segment.
Sterile injectables revenue was $240 million, down 22% year-over-year due to lower Vasostrict revenue due to generic competition and lower demand global as COVID-19-related hospitalizations decline.
In addition, guidance for the second quarter was disappointing due to challenging market dynamics for Vasostrict. It also hurt the stock.
Endo only provided financial guidance for the second quarter due to uncertainties associated with certain key assumptions. Revenue for the quarter is expected to be between $500 million and $525 million. The adjusted loss per share is estimated between 17 cents and 15 cents.
As of March 2022, the company had $1.4 billion in cash and cash equivalents and long-term debt of $8.0 billion.
Zacks Ranking and Stocks to Consider
Endo currently carries a Zacks Rank #3 (Hold). Some higher ranked stocks are Alkermes (ALKS – free report), Halozyme (HALO – free report) and Geron Corporation (GERMANY – free report). While Alkermes sports a Zacks rank #1 (strong buy), Geron and HALO have a Zacks rank #2 (buy). You can see the full list of today’s Zacks #1 Rank stocks here.
Loss estimates for ALKS for 2022 narrowed to 3 cents from a loss of 14 cents in the past 60 days. Alkermes has exceeded estimates over the past four quarters, with the average surprise being 350.48%.
Halozyme earnings estimates for 2022 rose 7 cents to $2.21 in the past 60 days. Halozyme has exceeded estimates in three of the last four quarters, with the average surprise being 21.84%.
Loss estimates for GERN for 2022 have declined by 6 cents over the past 60 days. Geron has exceeded estimates in three of the last four quarters, with the average surprise being 1.07%.