Core Viewpoint - Analysts expect Amneal Pharmaceuticals (AMRX) to report quarterly earnings of $0.13 per share, reflecting a year-over-year decline of 31.6%, while revenues are projected to be $693.68 million, an increase of 11.9% from the previous year [1] Group 1: Earnings Estimates - The consensus EPS estimate for the quarter has been revised downward by 3.3% over the past 30 days, indicating a collective reassessment by analysts [1] - The expected earnings of $0.13 per share represent a significant decline compared to the previous year [1] Group 2: Revenue Projections - Analysts estimate that 'Net Revenue- Generics Segment' will reach $404.71 million, reflecting a year-over-year change of +3.5% [4] - The 'Net Revenue- AvKARE Segment' is projected to be $167.09 million, indicating a substantial increase of +26.7% from the prior year [4] - 'Net Revenue- Specialty Segment' is forecasted to reach $120.20 million, suggesting a year-over-year change of +23.5% [4] Group 3: Stock Performance - Over the past month, Amneal shares have returned -4.7%, contrasting with the Zacks S&P 500 composite's +0.7% change [5] - Amneal currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near future [5]

Core Insights - The article emphasizes the importance of efficiency ratios in evaluating a company's potential for profitability and stock selection [1][6]. Efficiency Ratios - **Receivables Turnover**: This ratio measures a company's ability to extend credit and collect debts, with a high ratio indicating effective collection practices [2]. - **Asset Utilization**: This ratio assesses how well a company converts its assets into sales, with higher values suggesting greater efficiency [3]. - **Inventory Turnover**: This ratio indicates a company's ability to manage inventory relative to its cost of goods sold, with high values reflecting efficient inventory management [4]. - **Operating Margin**: This ratio measures the proportion of revenue that remains after covering operating expenses, with higher values indicating better expense management [5]. Screening Criteria - The screening process included a favorable Zacks Rank of 1 (Strong Buy) and required that the efficiency ratios exceed industry averages, narrowing the stock universe from over 7,906 to 14 [6]. Selected Stocks - **Amneal Pharmaceuticals (AMRX)**: An integrated specialty pharmaceutical company with a four-quarter earnings surprise of 57.1% [7]. - **Cronos Group (CRON)**: Engages in investments in licensed medical marijuana firms, with an average earnings surprise of nearly 50% [8]. - **Carriage Services (CSV)**: A leading provider of death care services in the U.S., showing a 36.3% earnings surprise [8]. - **Business First Bancshares (BFST)**: Provides banking services to small and midsize businesses, with a 10.6% earnings surprise [9]. - **Amphenol (APH)**: Designs and manufactures connectors and related products, with a 7.7% earnings surprise [10].

Company Overview - Amneal Pharmaceuticals (AMRX) is expected to report earnings for the quarter ended September 2024 on November 8, 2024, with a consensus estimate of $0.13 per share, reflecting a year-over-year decline of 31.6% [3][10] - Revenues are projected to be $693.68 million, indicating an increase of 11.9% compared to the same quarter last year [3] Earnings Expectations - The consensus EPS estimate has been revised down by 3.33% over the last 30 days, suggesting a bearish sentiment among analysts regarding the company's earnings prospects [4][10] - The Earnings ESP (Expected Surprise Prediction) for Amneal is -2.50%, indicating that the Most Accurate Estimate is lower than the Zacks Consensus Estimate [10] Historical Performance - In the last reported quarter, Amneal exceeded the expected earnings of $0.14 per share by delivering $0.16, resulting in a positive surprise of 14.29% [11] - Over the past four quarters, Amneal has beaten consensus EPS estimates four times [12] Market Sentiment - Despite the potential for an earnings beat, the combination of a negative Earnings ESP and a Zacks Rank of 2 (Buy) complicates predictions for Amneal's performance [10] - The company does not appear to be a compelling candidate for an earnings beat, and investors are advised to consider other factors before making investment decisions [15] Industry Context - Karyopharm Therapeutics (KPTI), another player in the Zacks Medical - Drugs industry, is expected to report a loss of $0.27 per share for the same quarter, reflecting a year-over-year change of +10% [16] - Karyopharm's revenues are anticipated to be $38.15 million, up 5.9% from the previous year, but the company has a negative Zacks Rank of 4 (Sell), making predictions for an earnings beat difficult [17]

Group 1: Market Overview - The S&P 500 reached new highs, while the Nasdaq approached its July peaks, driven by strong earnings from JPMorgan and other major Wall Street firms [1] - The positive start to the earnings season has improved the outlook for total S&P 500 earnings growth [1] - Despite potential volatility due to upcoming elections, solid earnings growth and lower interest rates are expected to encourage continued stock purchases [1] Group 2: Penny Stocks - The SEC defines penny stocks as securities trading for less than $5, expanding the traditional threshold of one dollar [2] - Investors often avoid penny stocks due to their speculative nature, infrequent trading, and wide bid/ask spreads, although some can perform exceptionally well [2] Group 3: Stocks Under $10 - Stocks priced between $5 and $10 are generally considered less risky than penny stocks, but still carry speculative characteristics [3] - A screening process was established to identify stocks under $10 with specific criteria, including a Zacks Rank of 2 or better and positive earnings estimate revisions [3] Group 4: Amneal Pharmaceuticals - Amneal Pharmaceuticals, trading under $10, has a strong earnings outlook and is involved in developing a wide range of generic and specialty pharmaceuticals [4][6] - The company is projected to grow its revenue by 15% in 2024, reaching nearly $3 billion, and has raised its full-year 2024 guidance due to broad-based growth [6] - Amneal's stock has increased by 45% year-to-date and is currently trading 11% below its average Zacks price target of $8.80, with four out of five brokerage recommendations being "Strong Buys" [6]

Group 1 - Amneal Pharmaceuticals (AMRX) has outperformed the Medical sector with a year-to-date return of approximately 41.2%, compared to the sector's average return of 8.1% [2] - The Zacks Consensus Estimate for AMRX's full-year earnings has increased by 0.6% over the past 90 days, indicating improved analyst sentiment and a stronger earnings outlook [2] - Amneal Pharmaceuticals holds a Zacks Rank of 1 (Strong Buy), suggesting a favorable investment outlook [1] Group 2 - Amneal Pharmaceuticals is part of the Medical - Drugs industry, which consists of 171 companies and currently ranks 89 in the Zacks Industry Rank, while the industry has seen an average loss of 2.9% this year [3] - Astrazeneca (AZN), another outperforming Medical stock, has returned 14.9% year-to-date and has a Zacks Rank of 2 (Buy) [2][3] - The Large Cap Pharmaceuticals industry, to which Astrazeneca belongs, is ranked 66 and has experienced a gain of 21.2% this year [3]

Shares of Amneal Pharmaceuticals (AMRX) , a commercial-stage company marketing generics as well as specialty pharmaceutical products for several therapeutic areas, including neurology and endocrinology, have soared 29.3% in the past month after the company announced back-to-back regulatory approvals.Amneal Gets FDA Nod for Parkinson’s Disease DrugIn August 2024, the FDA approved Amneal’s IPX203, a novel, oral formulation of carbidopa/levodopa (CD/LD) that combines both immediate-release (IR) granules and ex ...

Momentum investing is essentially an exception to the idea of "buying low and selling high." Investors following this style of investing are usually not interested in betting on cheap stocks and waiting long for them to recover. Instead, they believe that "buying high and selling higher" is the way to make far more money in lesser time.Everyone likes betting on fast-moving trending stocks, but it isn't easy to determine the right entry point. These stocks often lose momentum when their future growth potenti ...

Revenue Growth - Net revenue for the three months ended June 30, 2024, increased by 17.1% to $701.8 million compared to $599.0 million in the prior year period[195] - The Generics segment net revenue grew by $53.6 million, driven by new product launches, including biosimilars contributing $16.7 million and other new generics contributing $36.2 million[197] - The AvKARE segment net revenue increased by $42.1 million, primarily due to growth in distribution and government label channels from new product introductions[197] - The Specialty segment net revenue increased by $7.0 million, primarily due to a $9.4 million rise in the neurology portfolio, including $3.5 million from ONGENTYS® sales[197] - Net revenue for the three months ended June 30, 2024, increased by 7.3% to $104.041 million, driven by a $9.4 million increase in the promoted neurology portfolio[214] - Consolidated net revenue for the six months ended June 30, 2024, increased by 17.7% to $1.360 billion, primarily due to growth in the Generics segment[226] - Generics net revenue increased by 14.1% to $818.622 million, driven by new generic product launches and strong volume growth[238] - Specialty net revenue rose by 10.9% to $209.3 million for the six months ended June 30, 2024, driven by a $18.8 million increase in the neurology portfolio[245] - AvKARE net revenue surged by 33.0% to $333.1 million for the six months ended June 30, 2024, primarily due to growth in distribution channels[253] Profitability - Gross profit for the three months ended June 30, 2024, was $249.9 million, with a gross profit margin of 35.6%, down from 36.7% in the prior year[198] - Gross profit as a percentage of net revenue increased to 55.7% for the three months ended June 30, 2024, compared to 52.0% in the prior year period[215] - Generics gross profit margin improved to 38.8% for the six months ended June 30, 2024, up from 36.5% in the prior year[239] - Specialty gross profit margin increased to 56.5% for the six months ended June 30, 2024, compared to 52.5% in the prior year[246] - AvKARE gross profit margin improved to 15.6% for the six months ended June 30, 2024, up from 15.0% in the prior year[254] Expenses - Selling, general, and administrative expenses rose by 10.3% to $116.5 million, mainly due to increased employee compensation and promotional costs related to new product launches[199] - Research and development expenses decreased by 4.6% to $36.1 million, attributed to lower in-licensing and milestone payments[200] - Specialty SG&A expenses increased by 16.9% to $26.610 million, primarily due to promotional costs associated with ONGENTYS®[216] - R&D expenses decreased by 35.0% to $4.351 million, attributed to reduced project spending and infrastructure costs[217] - Generics SG&A expenses increased by 16.3% for the six months ended June 30, 2024, mainly due to employee compensation related to infrastructure expansion[240] - Specialty R&D expenses decreased by 28.8% to $9.3 million for the six months ended June 30, 2024, due to reduced project spending[248] Other Financial Metrics - Total other expense increased by 48.9% to $75.1 million, driven by a $14.9 million rise in interest expense and a $13.0 million increase in tax receivable agreement liability[202] - The provision for income taxes for the three months ended June 30, 2024, was $3.6 million, with an effective tax rate of 17.7%[203] - Total other expense for the six months ended June 30, 2024, increased by 48.3% to $(139.841) million, primarily due to higher interest expenses[233] - Charges related to legal matters for the six months ended June 30, 2024, amounted to $95.1 million, primarily associated with opioid-related settlements[232] Cash Flow and Capital Expenditures - Net cash provided by operating activities decreased to $35.2 million for the six months ended June 30, 2024, down 72.5% from $128.4 million in the prior year period[268] - Net cash used in investing activities increased to $26.2 million for the six months ended June 30, 2024, compared to $24.0 million in the prior year period, reflecting a rise of 9.2%[269] - Net cash used in financing activities rose significantly to $58.2 million for the six months ended June 30, 2024, an increase of 131.5% from $25.2 million in the prior year period[270] - The decrease in net operating cash flows was primarily due to lower collections of accounts receivable and the absence of a $21.4 million upfront payment received in the prior year[268] - The increase in cash used in investing activities was mainly due to a sales-based milestone payment related to a licensing agreement, partially offset by proceeds from the sale of a subsidiary[269] - The increase in cash used in financing activities was driven by a decrease in net debt of $55.1 million and increased payroll tax withholding on restricted stock units[270] - The company estimates capital expenditures of approximately $60.0 million to $70.0 million during 2024 to support operations[256] Company Outlook and Other Information - The Company expects to launch CREXONT®, a new drug for Parkinson's disease, in September 2024 following FDA approval[188] - As of June 30, 2024, there were no material changes to the company's contractual obligations as disclosed in the 2023 Annual Report[271] - The company reported no off-balance sheet arrangements as of June 30, 2024[272] - There have been no material changes in the company's assessment of market risk as outlined in the 2023 Annual Report[274] - The company has not disclosed any recently issued accounting standards that would materially affect its financial condition[274] - The company has access to $416.9 million under the Amended New Revolving Credit Facility as of June 30, 2024, which is deemed sufficient for planned operations[255]

Amneal Pharmaceuticals, Inc. (NASDAQ:AMRX) Q2 2024 Earnings Conference Call August 9, 2024 8:30 AM ET Company Participants Tony DiMeo - Head of Investor Relations Chirag Patel - President & Co-Chief Executive Officer Chintu Patel - Co-Chief Executive Officer Tasos Konidaris - Executive Vice President & Chief Financial Officer Joe Renda - Senior Vice President & Chief Commercial Officer, Specialty Conference Call Participants David Amsellem - Piper Sandler Leszek Sulewski - Truist Securities Operator Good mo ...

For the quarter ended June 2024, Amneal Pharmaceuticals (AMRX) reported revenue of $701.78 million, up 17.2% over the same period last year. EPS came in at $0.16, compared to $0.19 in the year-ago quarter.The reported revenue represents a surprise of +6.75% over the Zacks Consensus Estimate of $657.43 million. With the consensus EPS estimate being $0.14, the EPS surprise was +14.29%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wa ...