Taro Pharmaceutical Industries Ltd. (NYSE: TARO) stock lost over 3.7% on May 23rd, 2019 (As of 10:49 am GMT-4; Source: Google finance) though the company posted lower than expected results for the fourth quarter of FY 19. Net income attributable to Taro fell by a $27.9 million to $58.4 million compared to $86.3 million. Cash flow provided by operations for the year ended March 31, 2019 is of $323.7, which is quiet similar to the year ended March 31, 2018.
As of March 31, 2019, cash, including short-term bank deposits and marketable securities fell by $294.6 million to $1.4 billion from March 31, 2018. The decline reflects the impact from the $500.0 million special dividend paid in December 2018 and the $88.8 million impact from the completion of the Company’s share repurchase program.
TARO in the fourth quarter of FY 19 has reported the adjusted earnings per share of $1.52, missing the analysts’ estimates for the adjusted earnings per share of $2.26, according to Zacks Consensus Estimate. The company had reported the adjusted revenue of $179.92 million in the fourth quarter of FY 19, missing the analysts’ estimates for revenue by 5.26%. The decline in revenue is mainly driven by a 4.1% increase in overall volumes. The company posted the gross profit of $445.7 million (66.5% of net sales compared to 70.0%) decreased $17.8 million. R&D expenses of $63.2 million declined by $7.2 million, mainly due to the continuous evaluation of the company’s portfolio and adjusting for viable development of products. SG&A of $90.0 million increased $1.8 million during the fourth quarter. Operating income of $296.2 million (44.2% of net sales compared to 45.8%) fell by $6.8 million. Interest and other financial income grew by $13.6 million to $33.5 million.
Additionally, TARO has received approvals from the U.S. Food and Drug Administration for five Abbreviated New Drug Applications. This includes Minoxidil Topical Aerosol, 5% (for women); Clobazam Oral Suspension, 2.5 mg/mL; Naftifine Hydrochloride Gel USP, 2%; Dapsone Tablets USP, 25 mg and 100 mg and Deferiprone Tablets 500mg. The Company currently has a total of twenty-six ANDAs awaiting FDA approval, that also includes eight tentative approvals.
Meanwhile, TARO has completed its $250 million share repurchase program. The company bought back 2,493,378 of its ordinary shares in open market transactions at an average price of $100.28 per share. The repurchase program was announced by the company on November 23, 2016, and was completed on January 11, 2019.