Company Performance - Amneal Pharmaceuticals reported quarterly earnings of $0.16 per share, exceeding the Zacks Consensus Estimate of $0.13 per share, but down from $0.19 per share a year ago, representing an earnings surprise of 23.08% [1] - The company posted revenues of $702.47 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 1.27%, and up from $620.04 million year-over-year [2] - Over the last four quarters, Amneal has surpassed consensus EPS estimates four times and topped consensus revenue estimates three times [2] Stock Performance - Amneal shares have increased approximately 41.9% since the beginning of the year, compared to the S&P 500's gain of 25.2% [3] - The current consensus EPS estimate for the upcoming quarter is $0.16 on revenues of $700.15 million, and for the current fiscal year, it is $0.59 on revenues of $2.75 billion [7] Industry Outlook - The Medical - Drugs industry, to which Amneal belongs, is currently in the top 30% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that the industry outlook can significantly impact stock performance [5][8]

Revenue Performance - Q3 2024 net revenue was $702 million, a 13% increase compared to $620 million in Q3 2023[3] - Net revenue for Q3 2024 increased to $702.5 million, up 13.3% from $620.0 million in Q3 2023[17] - Generics net revenue increased 9% driven by strong performance of new product launches and biosimilars[3] - Specialty net revenue increased 19% driven by promoted products in neurology and endocrinology, including the recent launches of CREXONT and ONGENTYS for Parkinson's disease[3] - AvKARE net revenue increased 21% driven by growth across its distribution and government label sales channels[3] - Generics segment net revenue for Q3 2024 was $427.3 million, a 9.3% increase from $390.9 million in Q3 2023[31] - Specialty segment net revenue for Q3 2024 was $115.6 million, an 18.8% increase from $97.3 million in Q3 2023[38] - Generics segment nine-month net revenue for 2024 was $1.25 billion, a 12.4% increase from $1.11 billion in 2023[34] - Specialty segment nine-month net revenue for 2024 was $324.9 million, a 13.6% increase from $285.9 million in 2023[40] - Net revenue for the three months ended September 30, 2024 was $159.485 million, compared to $131.879 million in the same period in 2023[42] - Net revenue for the nine months ended September 30, 2024 was $492.559 million, compared to $382.286 million in the same period in 2023[44] Profitability and Margins - Gross profit for Q3 2024 rose to $269.6 million, a 15.9% increase from $232.5 million in Q3 2023[17] - Operating income for Q3 2024 grew to $88.8 million, up 17.4% from $75.6 million in Q3 2023[17] - Generics segment gross margin improved to 44.3% in Q3 2024 from 43.0% in Q3 2023[31] - Specialty segment gross margin increased to 80.2% in Q3 2024 from 79.7% in Q3 2023[38] - Gross margin for the three months ended September 30, 2024 was 17.7%, down from 19.9% in the same period in 2023[42] - Gross margin for the nine months ended September 30, 2024 was 16.3%, down from 16.7% in the same period in 2023[44] - Operating income for the three months ended September 30, 2024 was $16.659 million, up from $15.533 million in the same period in 2023[42] - Operating income for the nine months ended September 30, 2024 was $46.078 million, up from $34.001 million in the same period in 2023[44] Segment Performance - Generics segment operating income for Q3 2024 was $102.2 million, a 3.9% decrease from $106.3 million in Q3 2023[31] - Specialty segment operating income for Q3 2024 was $61.2 million, a 24.5% increase from $49.2 million in Q3 2023[38] - Generics segment nine-month operating income for 2024 was $315.5 million, a 10.2% increase from $286.2 million in 2023[34] - Specialty segment nine-month operating income for 2024 was $171.5 million, a 19.7% increase from $143.3 million in 2023[40] Financial Position - Total current assets as of September 30, 2024, increased to $1.51 billion from $1.38 billion as of December 31, 2023[19] - Long-term debt decreased to $2.17 billion as of September 30, 2024, from $2.39 billion as of December 31, 2023[19] - Trade accounts receivable, net, increased to $748.1 million as of September 30, 2024, from $613.7 million as of December 31, 2023[19] - Total liabilities as of September 30, 2024, were $3.46 billion, slightly down from $3.47 billion as of December 31, 2023[19] - Cash and cash equivalents decreased to $74.0 million as of September 30, 2024, from $91.5 million as of December 31, 2023[19] Earnings and Losses - Diluted loss per share in Q3 2024 was $0.00 compared to diluted income per share of $0.06 in Q3 2023[5] - Adjusted diluted EPS in Q3 2024 was $0.16 compared to $0.19 in Q3 2023[5] - Net loss attributable to Amneal Pharmaceuticals for Q3 2024 was $0.2 million, compared to a net income of $9.7 million in Q3 2023[17] - Net loss for the nine months ended September 30, 2024 was $53.1 million, compared to a net income of $44.6 million in the same period of 2023[21] - Adjusted diluted earnings per share for the nine months ended September 30, 2024 was $0.46, compared to $0.50 in the same period of 2023[24] Research and Development - Research and development expenses for Q3 2024 increased to $61.1 million, up 47.7% from $41.4 million in Q3 2023[17] - The company launched CREXONT for the treatment of Parkinson's disease and announced a collaboration with Metsera, Inc. for next-generation medicines for obesity and metabolic diseases[2] - The company expanded its pipeline by in-licensing a new high-value biosimilar[2] Adjusted EBITDA and Cash Flow - Adjusted EBITDA in Q3 2024 was $158 million, a 2% increase compared to Q3 2023, partially offset by a $20 million R&D milestone payment[4] - Adjusted EBITDA for the nine months ended September 30, 2024 was $472.2 million, an increase from $416.1 million in the same period of 2023[23] - Net cash provided by operating activities for the nine months ended September 30, 2024 was $177.0 million, a decrease from $209.8 million in the same period of 2023[21] Expenses and Adjustments - Depreciation and amortization expenses for the nine months ended September 30, 2024 were $170.1 million, slightly lower than $172.5 million in the same period of 2023[21] - Inventory provision for the nine months ended September 30, 2024 was $63.6 million, an increase from $56.6 million in the same period of 2023[21] - Charges related to legal matters for the nine months ended September 30, 2024 were $94.9 million, primarily associated with a nationwide opioid settlement[27] - Non-GAAP effective tax rate for the nine months ended September 30, 2024 was 24.7%, compared to 21.6% in the same period of 2023[28] - System implementation expenses for the nine months ended September 30, 2024 were $2.0 million, primarily for integrating acquired businesses[28] - Adjustments for the three months ended September 30, 2024 included $3.5 million in amortization expense[43] - Adjustments for the nine months ended September 30, 2024 included $10.6 million in amortization expense[45] Full-Year Guidance - Full-year 2024 guidance includes net revenue of $2.70 billion to $2.80 billion, adjusted EBITDA of $610 million to $630 million, and adjusted diluted EPS of $0.57 to $0.63[6]

Core Viewpoint - Analysts expect Amneal Pharmaceuticals (AMRX) to report quarterly earnings of $0.13 per share, reflecting a year-over-year decline of 31.6%, while revenues are projected to be $693.68 million, an increase of 11.9% from the previous year [1] Group 1: Earnings Estimates - The consensus EPS estimate for the quarter has been revised downward by 3.3% over the past 30 days, indicating a collective reassessment by analysts [1] - The expected earnings of $0.13 per share represent a significant decline compared to the previous year [1] Group 2: Revenue Projections - Analysts estimate that 'Net Revenue- Generics Segment' will reach $404.71 million, reflecting a year-over-year change of +3.5% [4] - The 'Net Revenue- AvKARE Segment' is projected to be $167.09 million, indicating a substantial increase of +26.7% from the prior year [4] - 'Net Revenue- Specialty Segment' is forecasted to reach $120.20 million, suggesting a year-over-year change of +23.5% [4] Group 3: Stock Performance - Over the past month, Amneal shares have returned -4.7%, contrasting with the Zacks S&P 500 composite's +0.7% change [5] - Amneal currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near future [5]

Efficiency level measures a company's capability to transform available input into output and is often considered an important parameter for gauging its potential to make profits. A company with a high-efficiency level is expected to provide stellar returns as it is believed to be positively correlated with price performance. However, at times, it becomes difficult to measure the efficiency level of a company. This is why one must consider the popular efficiency ratios listed below while selecting stocks. T ...

Wall Street expects a year-over-year decline in earnings on higher revenues when Amneal Pharmaceuticals (AMRX) reports results for the quarter ended September 2024. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates. The earnings report, which is expected to be released on November 8, 2024, might help the stock move higher if these key numbers are ...

The S&P 500 jumped to fresh highs on Monday and the Nasdaq's climb put it on the cusp of its July peaks. The strong start to the week came after JPMorgan and other Wall Street giants kicked off earnings season on a high note. See the Zacks Earnings Calendar to stay ahead of market-making news. The upbeat start to earnings season helped raise the outlook for total S&P 500 earnings growth. More volatility could come down the road, especially with the election around the corner. Still, the bullish backdrop of ...

Group 1 - Amneal Pharmaceuticals (AMRX) has outperformed the Medical sector with a year-to-date return of approximately 41.2%, compared to the sector's average return of 8.1% [2] - The Zacks Consensus Estimate for AMRX's full-year earnings has increased by 0.6% over the past 90 days, indicating improved analyst sentiment and a stronger earnings outlook [2] - Amneal Pharmaceuticals holds a Zacks Rank of 1 (Strong Buy), suggesting a favorable investment outlook [1] Group 2 - Amneal Pharmaceuticals is part of the Medical - Drugs industry, which consists of 171 companies and currently ranks 89 in the Zacks Industry Rank, while the industry has seen an average loss of 2.9% this year [3] - Astrazeneca (AZN), another outperforming Medical stock, has returned 14.9% year-to-date and has a Zacks Rank of 2 (Buy) [2][3] - The Large Cap Pharmaceuticals industry, to which Astrazeneca belongs, is ranked 66 and has experienced a gain of 21.2% this year [3]

Shares of Amneal Pharmaceuticals (AMRX) , a commercial-stage company marketing generics as well as specialty pharmaceutical products for several therapeutic areas, including neurology and endocrinology, have soared 29.3% in the past month after the company announced back-to-back regulatory approvals.Amneal Gets FDA Nod for Parkinson’s Disease DrugIn August 2024, the FDA approved Amneal’s IPX203, a novel, oral formulation of carbidopa/levodopa (CD/LD) that combines both immediate-release (IR) granules and ex ...

Momentum investing is essentially an exception to the idea of "buying low and selling high." Investors following this style of investing are usually not interested in betting on cheap stocks and waiting long for them to recover. Instead, they believe that "buying high and selling higher" is the way to make far more money in lesser time.Everyone likes betting on fast-moving trending stocks, but it isn't easy to determine the right entry point. These stocks often lose momentum when their future growth potenti ...

Revenue Growth - Net revenue for the three months ended June 30, 2024, increased by 17.1% to $701.8 million compared to $599.0 million in the prior year period[195] - The Generics segment net revenue grew by $53.6 million, driven by new product launches, including biosimilars contributing $16.7 million and other new generics contributing $36.2 million[197] - The AvKARE segment net revenue increased by $42.1 million, primarily due to growth in distribution and government label channels from new product introductions[197] - The Specialty segment net revenue increased by $7.0 million, primarily due to a $9.4 million rise in the neurology portfolio, including $3.5 million from ONGENTYS® sales[197] - Net revenue for the three months ended June 30, 2024, increased by 7.3% to $104.041 million, driven by a $9.4 million increase in the promoted neurology portfolio[214] - Consolidated net revenue for the six months ended June 30, 2024, increased by 17.7% to $1.360 billion, primarily due to growth in the Generics segment[226] - Generics net revenue increased by 14.1% to $818.622 million, driven by new generic product launches and strong volume growth[238] - Specialty net revenue rose by 10.9% to $209.3 million for the six months ended June 30, 2024, driven by a $18.8 million increase in the neurology portfolio[245] - AvKARE net revenue surged by 33.0% to $333.1 million for the six months ended June 30, 2024, primarily due to growth in distribution channels[253] Profitability - Gross profit for the three months ended June 30, 2024, was $249.9 million, with a gross profit margin of 35.6%, down from 36.7% in the prior year[198] - Gross profit as a percentage of net revenue increased to 55.7% for the three months ended June 30, 2024, compared to 52.0% in the prior year period[215] - Generics gross profit margin improved to 38.8% for the six months ended June 30, 2024, up from 36.5% in the prior year[239] - Specialty gross profit margin increased to 56.5% for the six months ended June 30, 2024, compared to 52.5% in the prior year[246] - AvKARE gross profit margin improved to 15.6% for the six months ended June 30, 2024, up from 15.0% in the prior year[254] Expenses - Selling, general, and administrative expenses rose by 10.3% to $116.5 million, mainly due to increased employee compensation and promotional costs related to new product launches[199] - Research and development expenses decreased by 4.6% to $36.1 million, attributed to lower in-licensing and milestone payments[200] - Specialty SG&A expenses increased by 16.9% to $26.610 million, primarily due to promotional costs associated with ONGENTYS®[216] - R&D expenses decreased by 35.0% to $4.351 million, attributed to reduced project spending and infrastructure costs[217] - Generics SG&A expenses increased by 16.3% for the six months ended June 30, 2024, mainly due to employee compensation related to infrastructure expansion[240] - Specialty R&D expenses decreased by 28.8% to $9.3 million for the six months ended June 30, 2024, due to reduced project spending[248] Other Financial Metrics - Total other expense increased by 48.9% to $75.1 million, driven by a $14.9 million rise in interest expense and a $13.0 million increase in tax receivable agreement liability[202] - The provision for income taxes for the three months ended June 30, 2024, was $3.6 million, with an effective tax rate of 17.7%[203] - Total other expense for the six months ended June 30, 2024, increased by 48.3% to $(139.841) million, primarily due to higher interest expenses[233] - Charges related to legal matters for the six months ended June 30, 2024, amounted to $95.1 million, primarily associated with opioid-related settlements[232] Cash Flow and Capital Expenditures - Net cash provided by operating activities decreased to $35.2 million for the six months ended June 30, 2024, down 72.5% from $128.4 million in the prior year period[268] - Net cash used in investing activities increased to $26.2 million for the six months ended June 30, 2024, compared to $24.0 million in the prior year period, reflecting a rise of 9.2%[269] - Net cash used in financing activities rose significantly to $58.2 million for the six months ended June 30, 2024, an increase of 131.5% from $25.2 million in the prior year period[270] - The decrease in net operating cash flows was primarily due to lower collections of accounts receivable and the absence of a $21.4 million upfront payment received in the prior year[268] - The increase in cash used in investing activities was mainly due to a sales-based milestone payment related to a licensing agreement, partially offset by proceeds from the sale of a subsidiary[269] - The increase in cash used in financing activities was driven by a decrease in net debt of $55.1 million and increased payroll tax withholding on restricted stock units[270] - The company estimates capital expenditures of approximately $60.0 million to $70.0 million during 2024 to support operations[256] Company Outlook and Other Information - The Company expects to launch CREXONT®, a new drug for Parkinson's disease, in September 2024 following FDA approval[188] - As of June 30, 2024, there were no material changes to the company's contractual obligations as disclosed in the 2023 Annual Report[271] - The company reported no off-balance sheet arrangements as of June 30, 2024[272] - There have been no material changes in the company's assessment of market risk as outlined in the 2023 Annual Report[274] - The company has not disclosed any recently issued accounting standards that would materially affect its financial condition[274] - The company has access to $416.9 million under the Amended New Revolving Credit Facility as of June 30, 2024, which is deemed sufficient for planned operations[255]