Insights

Why Endo International Stock Is Cratering Today

What happened
Endo International (NASDAQ: ENDP) stock was cratering on Friday, with shares falling 31.6% as of 11:49 a.m. ET. The sharp sell-off came after the drugmaker announced its first-quarter results following the market close on Thursday.
The company reported Q1 net revenue of $652.3 million, down 9% year over year. This result was in line with the consensus estimate.
Endo posted adjusted earnings in the first quarter of $155.9 million, or $0.66 per share. The average analysts’ estimate was for net income of $0.44 per share.
So what
Why did the pharma stock sink after beating Q1 estimates? Endo’s guidance for the second quarter disappointed investors in a major way.
The company projects Q2 revenue between $500 million and $525 million. That’s nowhere close to the consensus estimate of $655.6 million. Endo also anticipates a Q2 adjusted net loss per share between $0.17 and $0.15. Analysts were looking for positive adjusted earnings of $0.48 per share.
Endo CEO Blaise Coleman acknowledged “challenging market dynamics” for Vasostrict with the drug losing exclusivity. The company’s sterile injectable sales fell 22% year over year in the first quarter due primarily to generic competition for Vasostrict.
Image source: Getty Images.

Now what
It seems likely that Endo could continue to face stiff competition on several fronts throughout this year. There are so many uncertainties that the company didn’t provide guidance beyond the second quarter. 
However, Endo could have brighter prospects in the future. The company plans to initiate a new clinical study of Qwo this quarter that could pave the way for expanding its use in treating cellulite. Endo also recently acquired six injectable pipeline candidates from Nevakar. The first commercial launch from these programs could be on the way in 2025 if all goes well. 
Keith Speights has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. –

What happened

Endo International (NASDAQ: ENDP) stock was cratering on Friday, with shares falling 31.6% as of 11:49 a.m. ET. The sharp sell-off came after the drugmaker announced its first-quarter results following the market close on Thursday.

The company reported Q1 net revenue of $652.3 million, down 9% year over year. This result was in line with the consensus estimate.

Endo posted adjusted earnings in the first quarter of $155.9 million, or $0.66 per share. The average analysts’ estimate was for net income of $0.44 per share.

So what

Why did the pharma stock sink after beating Q1 estimates? Endo’s guidance for the second quarter disappointed investors in a major way.

The company projects Q2 revenue between $500 million and $525 million. That’s nowhere close to the consensus estimate of $655.6 million. Endo also anticipates a Q2 adjusted net loss per share between $0.17 and $0.15. Analysts were looking for positive adjusted earnings of $0.48 per share.

Endo CEO Blaise Coleman acknowledged “challenging market dynamics” for Vasostrict with the drug losing exclusivity. The company’s sterile injectable sales fell 22% year over year in the first quarter due primarily to generic competition for Vasostrict.

Image source: Getty Images.

Now what

It seems likely that Endo could continue to face stiff competition on several fronts throughout this year. There are so many uncertainties that the company didn’t provide guidance beyond the second quarter. 

However, Endo could have brighter prospects in the future. The company plans to initiate a new clinical study of Qwo this quarter that could pave the way for expanding its use in treating cellulite. Endo also recently acquired six injectable pipeline candidates from Nevakar. The first commercial launch from these programs could be on the way in 2025 if all goes well. 

Keith Speights has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

  • This field is for validation purposes and should be left unchanged.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US & HK* Trades. Click Here!