Endo’s (ENDP) stock has taken investors on a wild ride over the past year. At times it has been one of my most-rewarding and most-perplexing holdings. The shares reached a 52-week high of $18.50 in November 2018 just prior to reporting Q3 2018 earnings. The stock sold off immediately after Q3 earnings and appeared to have bottomed in the $7 range in late December. In my opinion, the sell off was inexplicable. Despite a single-digit decline in revenue Endo delivered a revenue and earnings beat.

It was more of the same in Q1 2019. Endo’s total revenue of $720 million rose 3%. The performance bested that of other generic drug makers like Teva (NYSE:TEVA) and Mylan (MYL):

Endo International (ENDP) reported Q1 2019 revenue of $720.41 million and non-GAAP eps of $0.53. The company beat on non-GAAP eps and beat on revenue by $28.1 million. This was an important quarter the company; Endo needs to prove the strength of its franchise amid headwinds in its Generics business. Competitors like Teva (TEVA) and Mylan (MYL) are also experiencing severe headwinds in the space.

The Generics segment reported a double-digit decline in revenue. However, Endo lowered its dependence on U.S. Generics. The segment represented 30% of total revenue in Q1 2019, down from 36% in the year earlier period. Secondly, the company grew EBITDA. Its EBITDA of $307 million was up 12% Y/Y. EBITDA margin of 43% was up 300 basis points versus that of the year earlier period. Read more:



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