Lannett (LCI) Reports In-Line Q2 EPS, Revenues Beat; Lowers FY21 Revenue Guidance Below Consensus
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Lannett (NYSE: LCI) reported Q2 EPS of $0.08, in-line with the analyst estimate of $0.08. Revenue for the quarter came in at $133.9 million versus the consensus estimate of $130 million.
"For the fiscal 2021 second quarter, net sales exceeded our expectations, and adjusted earnings per share and adjusted EBITDA were in line with our estimates," said Tim Crew, chief executive officer of Lannett. "We accomplished these results even though we continued to see new competitive approvals on certain key products and experienced certain out of the ordinary items, which negatively impacted our gross margin. Of course, there has also been an overall decline of total prescriptions related to the ongoing pandemic, which we expect will reverse in time. Further, our potentially durable, high-value pipeline assets in our portfolio continue to progress. So, while these immediate competitive pressures, along with the discontinuation of certain product lines noted below, have caused us to revise down our full-year guidance, we remain optimistic for our mid- and longer term growth prospects.
"Turning to our balance sheet, in November we used a portion of our existing cash to pay down, in full, our Term A Loans, which will lower our annual interest expense and principal payments, going forward. In December, we established a new $30 million revolving credit facility, further enhancing our financial flexibility.
"At quarter end, as previously disclosed, we made the decision to rationalize our product offering by discontinuing certain lower margin product lines. As a result, when combined with declines in key products, our expectation for the second half of fiscal 2021 compared with the first half is for our net sales to decrease but gross margin percentage to remain approximately the same."
Lannett sees FY2021 revenue of $480-500 million, versus the consensus of $529.32 million.
For earnings history and earnings-related data on Lannett (LCI) click here.
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