Lannett (LCI) reported earnings on Thur 8 Feb 18 (b/o)

** charts after earnings **

 

Lannett beats by $0.20, misses on revs; guides FY18 revs below consensus

• Reports Q2 (Dec) earnings of $1.06 per share, excluding non-recurring items, $0.20 better thanthe Capital IQ Consensus of $0.86; revenues rose 7.8% year/year to $184.31 mln vs the $190.92 mln Capital IQ Consensus.
• Co issues downside guidance for FY18, sees FY18 revs of $680-700 mln vs. $717.75 mln Capital IQ Consensus Estimate.
  • Previous guidance was for $710-720 mln
  • Sees gross margin of 48% to 49%, down from 51% to 52%
• Adjusted gross profit was $96.7 million, or 52% of adjusted net sales, compared with $96.2 million, or 56% of adjusted net sales, for the prior year second quarter.
• Co states, "With regard to our fiscal 2018 second quarter bottomline, our adjusted earnings substantially benefited from recently enacted U.S. tax reform. We also anticipate our future results will be positively impacted by a lower effective tax rate."