BRIDGEWATER, N.J. - Amneal Pharmaceuticals, Inc. (NASDAQ:AMRX) has reported a strong start to the first quarter of 2024, with a notable earnings and revenue beat that propelled its shares 3.86% higher.
The pharmaceutical company announced an adjusted EPS of $0.14, surpassing analysts' expectations by $0.05. Revenue for the quarter reached $659 million, exceeding the consensus estimate of $620.31 million.
The first quarter's revenue marked an 18% increase from the $558 million reported in the same period last year, indicating robust growth across the company's diversified business segments. This performance was driven by double-digit growth in all three segments, with generics revenues up 14%, specialty revenues increasing by 15%, and AvKARE revenues soaring by 33%. The positive results are attributed to strong performance in complex generics, oncology biosimilars, new launches, and expansion across channels due to new products.
However, the company faced a net loss of $92 million in the first quarter of 2024, compared to a $7 million loss in the first quarter of 2023, largely due to a pre-tax charge of $94 million related to a settlement in principle on a nationwide opioids settlement. Despite this, the adjusted EBITDA saw a significant rise of 31% to $152 million, reflecting the company's strong revenue performance and higher gross margins.
Looking ahead, Amneal reaffirmed its full-year 2024 guidance, projecting an adjusted EPS range of $0.53 to $0.63, which brackets the analyst consensus of $0.58. The company also anticipates net revenue between $2.55 billion and $2.65 billion for the year, with the midpoint slightly below the consensus estimate of $2.604 billion. Additionally, Amneal expects capital expenditures of $60 million to $70 million and operating cash flow of $260 million to $300 million.
Chirag and Chintu Patel, Co-Chief Executive Officers, expressed their satisfaction with the company's performance, stating, "We are extremely pleased with our outstanding start to the year, as Amneal generated record levels of revenues in the first quarter." They highlighted Amneal's role in addressing the demand for medicines and supply shortages in the U.S. pharmaceutical industry.
Investors have responded positively to the earnings and revenue beat, as reflected in the stock's upward movement following the announcement. The company's commitment to providing high-quality, affordable medicines and its strategic growth initiatives appear to be resonating well with the market.
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