Endo Posts Loss for First Quarter, Cuts Guidance
Endo is now expecting earnings for the full year of between $4.50 and $4.80 a share with its revenue between $3.87 billion and $4.03 billion.
Before the guidance cut, the company was expecting between $5.85 and $6.20 in earnings per share with revenue of $4.32 to $4.52 billion.
Analysts were expecting per share earnings to reach $5.68 with revenue of over $4.3 billion.
Endo which makes branded as well as generic drugs including medications that are over the counter said it would shut down one of its facilities in Charlotte, North Carolina, while reducing its Huntsville, Alabama workforce.
This is part of its restructuring in its generics manufacturing company. The company didn’t provide any other specifics but did day these moves were expected to create savings of close to $60 million during 2017.
For its first quarter of 2016, the company, based in Dublin, reported a $133.9 million loss equal to 60 cents a share. Earnings, which were adjusted for costs for asset impairment and amortization, were $1.08 a share.
The results were better than expectations on Wall Street, with the average by analysts of $1.05 a share.
The company posted $963.4 million in revenue for the three-month period, which missed forecasts on Wall Street. Analysts were expecting revenue to be $964.4 million.
For the prior year, during the same period, Endo posted a $75.6 million loss equal to 43 cents a share with revenue reaching over $714 million.
Endo in a separate report announced a number of changes in personnel. Brian Lortie, the president of its brand pharmaceuticals in the U.S., will step down as soon as a successor can be named. He joined Endo during 2009.
In addition, two new executives will join the board of Endo; Douglas Ingram, a former Allergan president and current Chase Pharmaceuticals CEO and Todd Sisitsky, who is the managing partner of TPG Capital, a shareholder of Endo.
Endo also announced that it amended its standstill agreement it had with TPG that will allow TPG to purchase more stock of Endo on the market subject to limitations.
Shares of Endo have dropped by 57% since the start of 2016 and over the past 12 months by 69% through the close of trading on Thursday.
After the earnings report was released, Endo stock was trading down close to 25% in trading after hours Thursday.