Endo International plc


ENDP

is slated to report fourth-quarter 2021 results on Feb 28, before the opening bell.

Last quarter, the company delivered an earnings surprise of 73.91%. It beat estimates in each of the trailing four quarters, the surprise being 57.69%, on average.

Shares of Endo’s have lost 69.2% in the past year compared with the

industry

’s decline of 31.3%.

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Factors at Play

Endo has four reportable business segments — Branded Pharmaceuticals, Generic Pharmaceuticals, Sterile Injectables and International Pharmaceuticals.

Branded Pharmaceuticals’ revenues were up 3% in the third quarter, and similar levels of growth might have been registered in the fourth quarter. Within the segment, Specialty Products revenues increased 16% in the prior quarter. The fourth quarter is likely to have witnessed similar or higher levels of growth. Sales of Xiaflex increased 20% in the previous quarter, and the drug is likely to have recorded sequential growth in the fourth quarter. However, Established Products revenues decreased 17% in the third quarter, and revenues from this franchise might have declined this time as well.

Sterile Injectables’ revenues jumped 37% year over year in the previous quarter due to increased Vasostrict revenues. This trend is expected to have continued in the fourth quarter.

Generic Pharmaceuticals reported 29% growth in the third quarter revenues due to additional revenues from the 2021 product launches. The fourth quarter is likely to have witnessed similar or higher levels of growth.

International Pharmaceuticals revenues declined in the previous quarter, and the same trend is likely to have prevailed in the fourth quarter.

Concurrent with the third-quarter results, Endo upped its annual revenue projections. Revenues for 2021 are projected to be $2.90-$2.94 billion compared with the earlier estimated range of $2.73-$2.79 billion. Hence, the total revenues are expected to have recorded sequential growth.

Other Updates

Endo announced that it and its wholly-owned subsidiaries Endo Pharmaceuticals Inc. and Endo Health Solutions Inc. have entered into a statewide settlement agreement intended to resolve all government-related opioid claims in Florida. Investors will focus on further updates on the same.

What Our Model Predicts

Our proven model does not predict an earnings beat for Endo this season. The combination of a positive

Earnings ESP

and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our

Earnings ESP Filter

.

Earnings ESP


: Earnings ESP of Endo is +5.71%, as the Zacks Consensus Estimate stands at 70 cents and the Most Accurate Estimate is 74 cents.

Zacks Rank


: It currently carries a Zacks Rank #5 (Strong Sell).

Stocks to Consider

Here are some health care stocks you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this quarter.

Vir Biotechnology


VIR

has an Earnings ESP of +32.05% and a Zacks Rank #3. You can see


the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here


.

Earnings per share estimates of Vir Biotechnology for 2022 have increased $6.52. VIR topped earnings estimates in two of the last four quarters and missed the mark on the other two, delivering a surprise of 13%, on average.

Emergent Biosolutions


EBS

has an Earnings ESP of +18.40% and a Zacks Rank #3.

Earnings per share estimates of EBS for 2022 have increased to $3.12 from $3.09 in the past seven days.

Moderna


MRNA

has an Earnings ESP of +1.90% and a Zacks Rank #3 at present.

Earnings per share estimates of Moderna for 2022 have increased $1 in the past 30 days. Moderna topped earnings estimates in two of the last four quarters and missed the mark on the other two, delivering a negative surprise of 35.8%, on average.

Stay on top of upcoming earnings announcements with the


Zacks Earnings Calendar


.

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