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Why is Endo International (ENDP) Stock Plunging Today?

On Friday, shares of global specialty healthcare company Endo International Plc ENDP are plunging, down over 40% after the company reported disappointing first quarter fiscal 2016 results.

Earnings per share came in at $1.08, lagging behind the Zacks Consensus Estimate of $1.05 per share. Revenues of $963.5 million also missed our consensus estimate of $964.4 million but increased 35% year-over-year.

Of its three operating segments, Branded Pharmaceuticals (U.S.) and Generic Pharmaceuticals (U.S.) each saw a year-over-year increase. Branded Pharmaceuticals sales were up 9% to $309 million, while Generic Pharmaceuticals of $583 million were up 63%. International Pharmaceuticals sales of $71 million was down from $85 million in the year-ago quarter.

As a result of its EPS and revenue performance, as well as considering the impact of several headwinds, Endo has cut its 2016 outlook. The company now expects revenues in the range of $3.87 billion-$4.03 billion, down from the range of $4.32 billion-$4.52 billion. EPS is now forecasted in the range of $4.50-$4.80 per share, also down from the old range of $5.85-$6.20 per share.

Endo also announced an accelerated restructuring of its Generics product and R&D portfolio, as well as its manufacturing facility network.

For a more in-depth look at Endo’s quarterly results, read our article “Endo Lags Q1 Earnings Estimates, Cuts 2016 Outlook.”

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