Pharma stock under pressure: Taro Pharmaceutical Industries Ltd. (NYSE: TARO)

Free $50 Forex No-Deposit Bonus

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.

Copyright © 2018. All Rights Reserved. FXDailyReport.Com
Risk Warning: Trading CFDs is a high risk activity and you may lose more than your initial deposit. You should never invest money that you cannot afford to lose. FXDailyReport.com will not accept any liability for loss or damage as a result of reliance on the information contained within this website including data, quotes, charts and buy/sell signals. Please be fully informed regarding the risks and costs associated with trading the financial markets.