Motley Fool
0
All posts from Motley Fool
Motley Fool in Motley Fool,

Why Endo International plc Jumped and Then Faded — Twice

What happened

Endo International (NASDAQ: ENDP) was up as much as 13.6% Tuesday before settling down to about half that gain after reporting preliminary third-quarter revenue and earnings results on Monday. The drugmaker can't seem to sustain a rally since Endo's shares did the same thing Monday, shooting up as much as 18% before ending the day up just 1.4%.

So what

Endo said third-quarter revenue came in at about $785 million with a loss of approximately $0.45 per share on a GAAP from continuing operations basis. Looking at adjusted earnings from continuing operations, Endo will post a profit of $0.85 per share.

The company also reaffirmed its revenue guidance for the year of between $3.38 billion and $3.53 billion. Endo's adjusted earnings from continuing operations are expected to be at the upper end of the guidance given in August of $3.35 to $3.65 per share.

Endo also noted that it plans to defend and protect its Vasostrict franchise from competition, pointing to a lawsuit filed against the FDA asking the court to make the agency stop the non-sterile-to-sterile bulk compounding of vasopressin, the active ingredient in Vasostrict. Endo recently got three patents issued for Vasostrict, which bring the total patents to five, all of which expire in 2035.

Image source: Getty Images.

Now what

Investors will have to wait until Nov. 9 to see the full results, but it's clear the third quarter was a solid one for Endo. It's likely that the stock didn't take off because it wasn't a breakout quarter -- management, for example, didn't raise 2017 guidance.

Considering all the struggles that Endo has had this year -- shares are down more than 60% year to date -- it seems reasonable for investors to take a wait-and-see attitude toward the drugmaker, especially with the uncertainty with Vasostrict hanging over its head.

10 stocks we like better than Endo International
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*

David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Endo International wasn't one of them! That's right -- they think these 10 stocks are even better buys.

Click here to learn about these picks!

*Stock Advisor returns as of October 9, 2017

Brian Orelli and The Motley Fool have no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.