Earnings Review and Free Research Report: Lannett’s Sales and Earnings Results Met Expectations
Research Desk Line-up: Catalent Post Earnings Coverage
LONDON, UK / ACCESSWIRE / September 13, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Lannett Co., Inc. (NYSE: LCI), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=LCI, following the Company's announcement of its fourth quarter fiscal 2017 financial results on August 23, 2017. The generic drug Company's sales and earnings declined on a y-o-y basis. Lannett also provided guidance for the upcoming quarter and fiscal year 2018. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:
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Get more of our free earnings reports coverage from other constituents of the Drugs - Generic industry. Pro-TD has currently selected Catalent, Inc. (NYSE: CTLT) for due-diligence and potential coverage as the Company announced on August 28, 2017, its financial results for Q4 FY17 and full year FY17 which ended on June 30, 2017. Register for a free membership today, and be among the early birds that get access to our report on Catalent when we publish it.
At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on LCI; also brushing on CTLT. With the links below you can directly download the report of your stock of interest free of charge at:
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Earnings Reviewed
For the fiscal 2017 fourth quarter, Lannett's total net sales were $139.1 million compared to $168.9 million in Q4 FY16. The Company's revenue was in-line with analysts' expectations. For fiscal year 2017, Lannett's net sales increased to $637.3 million from $566.1 million in FY16.
For Q4 FY17, Lannett's gross profit was $58.9 million, or 42% of net sales, compared to $79.9 million, or 47% of net sales, in Q4 FY16. The Company's adjusted gross profit was $68.0 million, or 49% of adjusted total net sales, compared to $91.9 million, or 54% of adjusted total net sales, for the prior year's corresponding quarter.
Lannett's research and development (R&D) expenses decreased to $11.4 million in Q4 FY17 from $13.0 million for Q4 FY16. The Company's adjusted R&D expenses were $11.4 million compared with $13.1 million in the year ago same period. Lannett's selling, general, and administrative (SG&A) expenses decreased to $16.5 million in the reported quarter from $22.0 million in the year ago comparable period. The Company's adjusted SG&A expenses declined to $16.2 million from $17.8 million in the prior year's same quarter.
Lannett's acquisition and integration-related expenses was $0.3 million in Q4 FY17 compared with $4.2 million in Q4 FY16. The Company's restructuring expenses were $1.8 million compared to $2.4 million in the year ago corresponding period. During Q4 FY17, Lannett's operating income was $28.8 million compared to $30.4 million in Q4 FY16. The Company's adjusted operating income was $40.4 million in the reported quarter versus $61.0 million for the prior year's comparable quarter.
Net income attributable to Lannett was $5.7 million, or $0.15 per diluted share, in Q4 FY17 compared to $3.6 million, or $0.10 per diluted share, for Q4 FY16. The Company's adjusted net income attributable to Lannett was $15.1 million, or $0.40 per diluted share, in the reported quarter compared to $27.5 million, or $0.73 per diluted share, for the year ago same period. The Company's earnings were also in-line with Wall Street's estimates.
For FY17, net loss attributable to Lannett was $0.6 million, or $0.02 per share, versus net income attributable to Lannett of $44.8 million, or $1.20 per diluted share, for FY16. The Company's adjusted net income attributable to Lannett was $107.9 million, or $2.86 per diluted share, compared to $127.8 million, or $3.42 per diluted share, for the year ago same period.
Cash Matters
During May 2017, Lannett voluntarily paid down the remaining principal balance of $25 million against its existing revolving credit facility. Since January 2017, the Company has made payments totaling $125 million to pay down the entire outstanding balance with its revolving credit facility. Accordingly, at June 30, 2017, Lannett's cash, cash equivalents, and investment securities totaled $144.8 million and debt outstanding was $904 million.
Outlook
For FY18, on an adjusted basis, Lannett is forecasting net sales in the range of $655 million to $665 million, representing a 3% to 4% increase over FY17. The Company's adjusted gross margin as a percentage of net sales is expected to be approximately 51% to 52%, adjusted R&D expense in the range of $46 million to $48 million, adjusted SG&A expense ranging from $73 million to $75 million; and lastly, capital expenditures in FY18 is anticipated to be in the band of $65 million to $75 million.
For Q1 FY18, Lannett is expecting net sales to increase in the low double-digit range on a y-o-y basis. The Company is projecting adjusted EPS to increase by approximately 30% compared with Q4 FY17.
Stock Performance
On Tuesday, September 12, 2017, the stock closed the trading session at $18.05, advancing 1.98% from its previous closing price of $17.70. A total volume of 369.65 thousand shares have exchanged hands. Lannett's stock price surged 10.06% in the last one month. The stock currently has a market cap of $665.32 million.
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