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Endo reports 1st-quarter loss, trims full-year guidance

DUBLIN – Shares of Endo International PLC plunged in extended trading Thursday after the drugmaker slashed its full-year outlook because of increasing competition and regulatory delays.

Endo now expects full-year earnings of $4.50 to $4.80 per share, with revenue of $3.87 billion to $4.03 billion. Previously the company expected to earn $5.85 to $6.20 per share on revenue between $4.32 billion and $4.52 billion.

Analysts surveyed by FactSet expect earnings per share of $5.68 on revenue of $4.3 billion, on average.

Endo, which makes both branded and generic drugs as well as over-the-counter medications, said it will shut a facility in Charlotte, North Carolina, and reduce its workforce in Huntsville, Alabama, as part of the restructuring of its generics manufacturing business. The company did not provide more specifics but said the moves are expected to lead to savings of about $60 million in 2017.

For the first three months of the year, the Dublin-based company reported a loss of $133.9 million, or 60 cents per share. Earnings, adjusted for amortization costs and asset impairment costs, came to $1.08 per share.

The results beat Wall Street expectations. The average estimate of 10 analysts surveyed by Zacks Investment Research was for earnings of $1.05 per share.

The health care company posted revenue of $963.5 million in the period, which did not meet Street forecasts. Seven analysts surveyed by Zacks expected $964.4 million.

A year earlier Endo posted a loss of $75.7 million, or 43 cents per share, on revenue of $714.1 million.

Separately Endo announced several personnel changes. Brian Lortie, president of its U.S. branded pharmaceuticals, will step down when a successor is named. He had joined the company in 2009.

Also, two executives are joining Endo’s board: Douglas Ingram, former president of Allergan Inc. and current CEO of Chase Pharmaceuticals Corp., and Todd Sisitsky, managing partner of Endo shareholder TPG Capital. Endo also said it has amended a standstill agreement with TPG that will let TPG buy more Endo stock on the open market, subject to certain limitations.

Endo shares have decreased 57 per cent since the beginning of the year and 69 per cent in the last 12 months through the close of regular-session trading Thursday.

After the release of the earnings report, the stock traded at $20, down nearly 25 per cent in after-hours trading.

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Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on ENDP at http://www.zacks.com/ap/ENDP

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Keywords: Endo International, Earnings Report