Core Insights - Amneal Pharmaceuticals reported revenue of $702.47 million for Q3 2024, marking a year-over-year increase of 13.3% and exceeding the Zacks Consensus Estimate by 1.27% [1] - The company's EPS for the quarter was $0.16, down from $0.19 a year ago, but it surpassed the consensus estimate of $0.13 by 23.08% [1] Revenue Breakdown - Generics Segment: Net revenue was $427.35 million, exceeding the average estimate of $404.71 million by analysts, reflecting a year-over-year increase of 9.3% [3] - AvKARE Segment: Net revenue reached $159.49 million, below the average estimate of $167.09 million, but showing a year-over-year growth of 20.9% [3] - Specialty Segment: Net revenue was $115.64 million, slightly below the average estimate of $120.20 million, with a year-over-year increase of 18.8% [3] Stock Performance - Amneal's shares have returned 1.8% over the past month, compared to a 4.9% increase in the Zacks S&P 500 composite [4] - The stock currently holds a Zacks Rank 2 (Buy), suggesting potential outperformance against the broader market in the near term [4]

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]

Core Insights - The article emphasizes the importance of efficiency ratios in evaluating a company's potential for profitability and stock selection [1][6]. Efficiency Ratios - **Receivables Turnover**: This ratio measures a company's ability to extend credit and collect debts, with a high ratio indicating effective collection practices [2]. - **Asset Utilization**: This ratio assesses how well a company converts its assets into sales, with higher values suggesting greater efficiency [3]. - **Inventory Turnover**: This ratio indicates a company's ability to manage inventory relative to its cost of goods sold, with high values reflecting efficient inventory management [4]. - **Operating Margin**: This ratio measures the proportion of revenue that remains after covering operating expenses, with higher values indicating better expense management [5]. Screening Criteria - The screening process included a favorable Zacks Rank of 1 (Strong Buy) and required that the efficiency ratios exceed industry averages, narrowing the stock universe from over 7,906 to 14 [6]. Selected Stocks - **Amneal Pharmaceuticals (AMRX)**: An integrated specialty pharmaceutical company with a four-quarter earnings surprise of 57.1% [7]. - **Cronos Group (CRON)**: Engages in investments in licensed medical marijuana firms, with an average earnings surprise of nearly 50% [8]. - **Carriage Services (CSV)**: A leading provider of death care services in the U.S., showing a 36.3% earnings surprise [8]. - **Business First Bancshares (BFST)**: Provides banking services to small and midsize businesses, with a 10.6% earnings surprise [9]. - **Amphenol (APH)**: Designs and manufactures connectors and related products, with a 7.7% earnings surprise [10].

Company Overview - Amneal Pharmaceuticals (AMRX) is expected to report earnings for the quarter ended September 2024 on November 8, 2024, with a consensus estimate of $0.13 per share, reflecting a year-over-year decline of 31.6% [3][10] - Revenues are projected to be $693.68 million, indicating an increase of 11.9% compared to the same quarter last year [3] Earnings Expectations - The consensus EPS estimate has been revised down by 3.33% over the last 30 days, suggesting a bearish sentiment among analysts regarding the company's earnings prospects [4][10] - The Earnings ESP (Expected Surprise Prediction) for Amneal is -2.50%, indicating that the Most Accurate Estimate is lower than the Zacks Consensus Estimate [10] Historical Performance - In the last reported quarter, Amneal exceeded the expected earnings of $0.14 per share by delivering $0.16, resulting in a positive surprise of 14.29% [11] - Over the past four quarters, Amneal has beaten consensus EPS estimates four times [12] Market Sentiment - Despite the potential for an earnings beat, the combination of a negative Earnings ESP and a Zacks Rank of 2 (Buy) complicates predictions for Amneal's performance [10] - The company does not appear to be a compelling candidate for an earnings beat, and investors are advised to consider other factors before making investment decisions [15] Industry Context - Karyopharm Therapeutics (KPTI), another player in the Zacks Medical - Drugs industry, is expected to report a loss of $0.27 per share for the same quarter, reflecting a year-over-year change of +10% [16] - Karyopharm's revenues are anticipated to be $38.15 million, up 5.9% from the previous year, but the company has a negative Zacks Rank of 4 (Sell), making predictions for an earnings beat difficult [17]

Group 1: Market Overview - The S&P 500 reached new highs, while the Nasdaq approached its July peaks, driven by strong earnings from JPMorgan and other major Wall Street firms [1] - The positive start to the earnings season has improved the outlook for total S&P 500 earnings growth [1] - Despite potential volatility due to upcoming elections, solid earnings growth and lower interest rates are expected to encourage continued stock purchases [1] Group 2: Penny Stocks - The SEC defines penny stocks as securities trading for less than $5, expanding the traditional threshold of one dollar [2] - Investors often avoid penny stocks due to their speculative nature, infrequent trading, and wide bid/ask spreads, although some can perform exceptionally well [2] Group 3: Stocks Under $10 - Stocks priced between $5 and $10 are generally considered less risky than penny stocks, but still carry speculative characteristics [3] - A screening process was established to identify stocks under $10 with specific criteria, including a Zacks Rank of 2 or better and positive earnings estimate revisions [3] Group 4: Amneal Pharmaceuticals - Amneal Pharmaceuticals, trading under $10, has a strong earnings outlook and is involved in developing a wide range of generic and specialty pharmaceuticals [4][6] - The company is projected to grow its revenue by 15% in 2024, reaching nearly $3 billion, and has raised its full-year 2024 guidance due to broad-based growth [6] - Amneal's stock has increased by 45% year-to-date and is currently trading 11% below its average Zacks price target of $8.80, with four out of five brokerage recommendations being "Strong Buys" [6]

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 ...