Lannett posts 2Q results beating expectations, raises guidance

Lannett Company Inc (NYSE:LCI) reported second-quarter results that beat analysts’ estimates and raised its guidance for fiscal 2019.

For the three months ended December 31, the generic-drug company posted earnings per share of $0.86 on net sales of $193.7 million. The average forecast of analysts called for earnings per share of $0.67 on estimated net sales of $162.43 million.

After rallying 18% in Thursday’s premarket trading, it gave back gains at the opening.

READ: Lannett reports mixed 4Q results, braces itself for the loss of a major customer in the year ahead

“Stellar sales across our product offering drove our strong fiscal 2019 second-quarter financial results,” CEO Tim Crew said in a statement Wednesday.

The Philadelphia company increased its guidance for fiscal 2019 to $615 million-$635 million, up from $585 million-$615 million. It reported a $164 million cash balance that it says continues to grow.

Roth Capital Partners raised its price target for the company to $10 from $8. The firm maintained its rating at Neutral, although it added that it’s incrementally positive on the company.

In November, Lannett agreed to a deal that makes Amneal Pharmaceuticals Inc (NYSE:AMRX) the company’s sole customer for Levothyroxine sodium tablets. Lannett has said an agreement with Jerome Stevens Pharmaceuticals Inc will not be renewed.

–This story has been updated to give Roth Capital’s increased price target–

Contact Dennis Fitzgerald at [email protected]
 

Story by ProactiveInvestors