Lannett (LCI) Misses Q3 EPS by 10c

Lannett (NYSE: LCI) reported Q3 EPS of $0.77, $0.10 worse than the analyst estimate of $0.87. Revenue for the quarter came in at $165.72 million versus the consensus estimate of $170.5 million.

"Net sales in our fiscal 2017 third quarter increased compared with the same quarter last year, largely due to volume increases, even though sales were reduced by $4.5 million as a result of Medicaid\'s Inflation-Adjusted Rebate program," said Arthur Bedrosian, chief executive officer of Lannett. "The program began being applied to generic drugs for the first time in calendar 2017. Despite higher net sales, our financial results were not at the level we expected due to competitive pricing pressure across a number of products, product mix and changes within distribution channels.

"Looking ahead, our business remains strong. We paid down $100 million of debt during the recently completed quarter, lowering annualized cash interest expense by approximately $5.5 million. Our goal remains to utilize free cash flow to further pay down debt. We continue to make solid progress on reducing costs, enhancing efficiencies and transferring manufacturing to our state of the art facility in Seymour, Indiana. In addition, we have a number of drug applications pending at the FDA and anticipate launching recently approved products in the first half of fiscal 2018."

For earnings history and earnings-related data on Lannett (LCI) click here.

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