Taro Pharmaceutical Industries Ltd. (NYSE: TARO) stock fell over 2.4% on 10th August, 2018 (as of 11:55 AM GMT-4; Source: Google finance) after the company missed the analysts’ expectations for the first quarter of 2019. TARO in the first quarter of 2019 has reported the adjusted earnings per share of $1.71, missing the analysts’ estimates for the adjusted earnings per share of $2.33. The company had reported 4.2 percent fall in the adjusted revenue to $154.6 million in the first quarter of 2019, missing the analysts’ estimates for revenue of $179.54 million. The revenue fell as the result of continuing increased competition and the challenging pricing environment despite an overall rise in volumes of 11.1%.
For the first quarter of 2019, the net income attributable to Taro was $67.3 million compared to $54.5 million. The company has posted the net income attributable to Taro was $67.3 million during the first quarter of 2019 compared to $54.5 million during the first quarter of 2018. The company’s cash flow provided by operations was $82.4 million compared to $72.7 million for the three months ended June 30, 2017.
As of June 30, 2018, cash, including short-term and long-term bank deposits and marketable securities, increased $63.6 million to $1.7 billion from March 31, 2018. Cash reflects the $24.7 million impact from the Company’s share repurchases during the current quarter.
Moreover, for the first quarter of 2019, Gross profit decreased $16.5 million to $100.1 million, and as a percentage of net sales, was 64.7% compared to 72.2%. The research and development expenses decreased $1.3 million to $13.3 million. Selling, marketing, general and administrative expenses fell $0.7 million to $23.6 million. Operating income of $63.2 million decreased $14.5 million and as a percentage of net sales was 40.8% as compared to 48.1%. Interest and other financial income increased $3.3 million to $7.8 million.
During the first quarter of 2019, TARO received two approvals from the U.S. Food and Drug Administration (FDA) for Abbreviated New Drug Applications (ANDAs); Benzoyl Peroxide; Clindamycin Phosphate Topical Gel 5%; 1% and Clindamycin Phosphate and Benzoyl Peroxide Gel, 1.2%/3.75%. The Company currently has a total of thirty-two ANDAs awaiting FDA approval, including five tentative approvals.
During the quarter, the Company repurchased 202,325 shares at an average price of $100.34. Through June 30, 2018, in total under the authorization, the Company has repurchased 1,806,984 shares at an average price of $102.86; with $64.1 million remaining.