Endo Health Q4 Adj. Earnings Down, But Top Estimates; Sees FY14 EPS Below View

(RTTNews) - Pharmaceutical company Endo Health Solutions Inc. (ENDP) Friday reported a wider net loss for the fourth-quarter, largely due to a decrease in revenues, a goodwill impairment charge related to the American Medical Systems acquisition and an increase in product liability reserve to meet the claims connected with vaginal mesh cases. The company also reported adjusted earnings that decreased but surpassed estimates by three cents.

Further, the company issued a guidance for adjusted earnings for 2014 that were below the Street view.

For the 3-month period, loss widened to $775.91 million or $6.74 per share, from a loss of $716.27 million or $6.35 per share a year earlier.

Results for the period included a approximately $495 million pre-tax, non cash impairment charge mostly related to goodwill attributable to the company's acquisition of American Medical Systems, and a $316 million pre-tax, non-cash charge to increase the product liability reserve for known and estimated future claims connected with vaginal mesh cases.

Adjusted earnings decreased to $123.69 million or $0.96 per share, from $186.59 million or $1.62 per share a year earlier. On average, 19 analysts polled by Thomson-Reuters estimated the company's earnings to be $0.93 for the quarter. Analysts' estimates typically exclude one-time items.

Fourth-quarter revenues plummeted to $584.95 million from $749.82 million a year earlier. Analysts had expected revenues of $620.74 million.

For the full-year 2013, loss narrowed to $685.34 million or $6.05 per share, from $740.34 million or $6.40 per share in 2012. Annual revenues decreased to $2.617 billion from $2.816 billion a year earlier.

For 2014, the company expects earnings of $1.36 to $1.81 per share on revenue of $2.50 billion to $2.62 billion. Adjusted earnings per share are expected to $3.40 to $3.65 per share. Street view for 2014 earnings is $4.01 per share and revenue is $2.59 billion.