Amneal Pharmaceuticals, Inc. (NASDAQ:AMRX) Q4 2024 Earnings Conference Call February 28, 2025 8:30 AM ET Company Participants Tony DiMeo - Head of Investor Relations Chirag Patel - President and Co-Chief Executive Officer Chintu Patel - Co-Chief Executive Officer Tasos Konidaris - Executive Vice President and Chief Financial Officer Joe Renda - Senior Vice President and Chief Commercial Officer, Specialty Jason Daly - Chief Legal Officer Conference Call Participants Chris Schott - J.P. Morgan David Amsellem ...

Amneal Pharmaceuticals (AMRX) reported $730.52 million in revenue for the quarter ended December 2024, representing a year-over-year increase of 18.4%. EPS of $0.12 for the same period compares to $0.14 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $708.21 million, representing a surprise of +3.15%. The company delivered an EPS surprise of -20.00%, with the consensus EPS estimate being $0.15.While investors scrutinize revenue and earnings changes year-over-year and how they com ...

Group 1: Earnings Performance - Amneal Pharmaceuticals reported quarterly earnings of $0.12 per share, missing the Zacks Consensus Estimate of $0.15 per share, and down from $0.14 per share a year ago, representing an earnings surprise of -20% [1] - The company posted revenues of $730.52 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 3.15%, compared to year-ago revenues of $616.98 million [2] - Over the last four quarters, Amneal has surpassed consensus EPS estimates three times and topped consensus revenue estimates four times [2] Group 2: Stock Performance and Outlook - Amneal shares have increased by approximately 5.8% since the beginning of the year, while the S&P 500 has declined by -0.3% [3] - The sustainability of the stock's immediate price movement will depend on management's commentary during the earnings call and future earnings expectations [3][4] - The current consensus EPS estimate for the coming quarter is $0.16 on revenues of $704.43 million, and for the current fiscal year, it is $0.68 on revenues of $2.92 billion [7] Group 3: Industry Context - The Medical - Drugs industry, to which Amneal belongs, is currently in the top 34% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Amneal's stock performance [5][6]

Financial Performance - Q4 2024 net revenue was $731 million, an 18% increase from $617 million in Q4 2023[3] - Full year 2024 net revenue reached $2.79 billion, a 17% increase compared to $2.39 billion in 2023[3] - Q4 2024 adjusted net income was $40 million, with adjusted EBITDA of $155 million, reflecting a 9% increase from the previous year[3] - Full year 2024 adjusted EBITDA was $627 million, a 12% increase from the prior year[3] - Adjusted diluted EPS for full year 2024 was $0.58, a 9% decrease from $0.64 in 2023[3] - The company provided 2025 financial guidance of $3.0 to $3.1 billion in net revenue and $650 to $675 million in adjusted EBITDA[4] Segment Performance - Affordable Medicines segment revenue grew by 21% in Q4 2024, driven by new product launches and biosimilars[3] - AvKARE segment revenue increased by 14% in Q4 2024 due to new product launches[3] - Specialty segment revenue grew by 16% in Q4 2024, supported by key branded products including CREXONT®[3] - The Specialty Segment reported net revenue of $445,749 for the year ended December 31, 2024, up from $390,457 in 2023, marking a 14.2% increase[47] - The AvKARE Segment achieved net revenue of $662,945 for the year ended December 31, 2024, compared to $531,749 in 2023, representing a 24.7% growth[54] Expenses and Losses - Research and development expenses increased to $190.7 million for the year ended December 31, 2024, compared to $164.0 million in 2023, reflecting a 16.3% rise[17] - The net loss attributable to Amneal Pharmaceuticals, Inc. for the year ended December 31, 2024, was $116.9 million, compared to a net loss of $84.0 million in 2023, representing a 38.9% increase in losses[17] - The company incurred stock-based compensation expenses of $7,209 thousand for the three months ended December 31, 2024, compared to $5,974 thousand in the same period of 2023[30] - The company recorded a significant reduction in legal-related charges, with net charges of $96,692 in 2024 compared to $10,000 in 2023[40] Assets and Liabilities - Total current assets increased to $1,587.8 million as of December 31, 2024, from $1,377.9 million in 2023, marking a 15.2% growth[19] - Total liabilities decreased to $3,501.4 million as of December 31, 2024, from $3,472.6 million in 2023, indicating a slight reduction in overall liabilities[19] - Cash and cash equivalents at the end of the period increased to $110.6 million in 2024, up from $91.5 million in 2023, a growth of 20.5%[21] Cash Flow and Operating Activities - The company reported a net cash provided by operating activities of $295.1 million for the year ended December 31, 2024, compared to $345.6 million in 2023, a decrease of 14.6%[21] Corporate Structure and Strategy - The company implemented a reorganization plan on November 7, 2023, converting to a more traditional C-corporation structure[17] - The company plans to continue focusing on expanding its product pipeline and enhancing operational efficiencies in the upcoming fiscal year[17] - The company plans to continue focusing on market expansion and new product development to drive future growth[41] Leverage and Debt - The company reduced net leverage to 3.9x, ahead of its commitment to be below 4x[2] - The net leverage ratio improved to 3.9x as of December 31, 2024, down from 4.8x as of December 31, 2023[26] - Total gross debt as of December 31, 2024, was $2,584,835 thousand, a decrease from $2,766,826 thousand as of December 31, 2023[26]

Wall Street analysts forecast that Amneal Pharmaceuticals (AMRX) will report quarterly earnings of $0.15 per share in its upcoming release, pointing to a year-over-year increase of 7.1%. It is anticipated that revenues will amount to $707.4 million, exhibiting an increase of 14.7% compared to the year-ago quarter.The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates duri ...

Amneal Pharmaceuticals (AMRX) shares rallied 6% in the last trading session to close at $8.30. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 9.8% loss over the past four weeks.The sudden soaring of the stock price can be attributed to positive investor expectations regarding the strong market potential of its generics as well as specialty pharmaceutical products portfolios. This pharmaceutical company is ex ...

Core Viewpoint - J.P. Morgan has upgraded Amneal Pharmaceuticals due to the strong positioning of its generics business, particularly following the successful launch of Crexont and ongoing momentum across its portfolio [1][4]. Company Performance - The FDA approved Amneal's IPX203 for Parkinson's disease as Crexont in August 2024, with the drug launched in September [1]. - Crexont prescriptions are approaching 1,000 per week, with 964 recorded in the week of February 14, capturing about 15% of Rytary's volume [2]. - J.P. Morgan anticipates strong growth for Amneal, projecting Crexont revenue of $64 million in 2025, $125 million in 2026, and peak sales exceeding $300 million [3]. Financial Projections - Amneal is expected to report fourth-quarter sales of $707.05 million and adjusted EPS of 15 cents [3]. - J.P. Morgan has raised its price forecast for Amneal from $9 to $12, reflecting confidence in the company's growth trajectory [4]. Market Trends - The generics segment is expected to grow by double digits in 2024, with an anticipated 8% increase in 2025 driven by new generics and rising biosimilar adoption [5]. - The company has successfully transitioned its generics business from simple oral tablets to more complex products, supporting long-term growth [4][5]. - AMRX stock has increased by 8.75%, reaching $8.515 [5].

Core Viewpoint - Wall Street anticipates a year-over-year increase in earnings for Amneal Pharmaceuticals, with a focus on how actual results compare to estimates impacting stock price [1][2]. Earnings Expectations - Amneal is expected to report quarterly earnings of $0.15 per share, reflecting a +7.1% change year-over-year, with revenues projected at $707.4 million, up 14.7% from the previous year [3]. - The earnings report is scheduled for release on February 28, 2025, and could influence stock movement based on whether results exceed or fall short of expectations [2]. Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating stability in analyst assessments [4]. - A positive Earnings ESP of +2.27% suggests analysts have recently become more optimistic about Amneal's earnings prospects [10]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive reading is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [8]. - Amneal currently holds a Zacks Rank of 3, indicating a likelihood of beating the consensus EPS estimate [11]. Historical Performance - Amneal has consistently beaten consensus EPS estimates, achieving this in the last four quarters, including a +23.08% surprise in the most recent quarter [12][13]. Industry Context - BioCryst Pharmaceuticals, another player in the Zacks Medical - Drugs industry, is expected to report earnings of $0.06 per share, with a year-over-year change of +78.6% and revenues of $130.8 million, up 40% [17]. - BioCryst's Earnings ESP is -7.14%, making it challenging to predict a beat on the consensus EPS estimate, despite a Zacks Rank of 3 [18].

Core Insights - Amneal Pharmaceuticals (AMRX) is positioned to continue its earnings-beat streak, having surpassed earnings estimates by an average of 18.68% in the last two quarters [1][3]. Earnings Performance - In the most recent quarter, Amneal reported earnings of $0.16 per share, exceeding the expected $0.13 per share, resulting in a surprise of 23.08% [2]. - For the previous quarter, the company also beat estimates, reporting $0.16 per share against a consensus estimate of $0.14 per share, which was a surprise of 14.29% [2]. Earnings Estimates and Predictions - Estimates for Amneal have been trending higher due to its history of earnings surprises, with a current Earnings ESP of +2.27%, indicating increased analyst optimism regarding its near-term earnings potential [3][6]. - The combination of a positive Earnings ESP and a Zacks Rank of 3 (Hold) suggests a high likelihood of another earnings beat, with historical data showing that stocks with this combination beat estimates nearly 70% of the time [4][6]. Earnings ESP Explanation - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate reflecting the latest analyst revisions, which may be more accurate than earlier predictions [5]. - A negative Earnings ESP can reduce predictive power but does not necessarily indicate an earnings miss, as many companies still beat consensus estimates despite a negative ESP [7]. Strategic Insights - It is crucial for investors to check a company's Earnings ESP before quarterly releases to enhance the chances of successful investment decisions [8].

Core Viewpoint - Amneal Pharmaceuticals (AMRX) shows potential for upside with a mean price target of $10.50, indicating a 27.1% increase from the current price of $8.26 [1] Price Targets - The average price target consists of four estimates ranging from $9 to $12, with a standard deviation of $1.29, suggesting a consensus among analysts [2] - The lowest estimate indicates a 9% increase, while the highest suggests a 45.3% upside [2] - A low standard deviation indicates strong agreement among analysts regarding the stock's price movement [7] Analyst Sentiment - Analysts exhibit growing optimism about AMRX's earnings prospects, as indicated by upward revisions in EPS estimates [9] - Over the past 30 days, one estimate has increased, leading to a 0.5% rise in the Zacks Consensus Estimate [10] - AMRX holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates [11] Caution on Price Targets - Solely relying on price targets for investment decisions may not be wise, as they can mislead investors [3][5] - Analysts often set optimistic price targets due to business incentives, which can inflate expectations [6] - While price targets should not be ignored, they should be approached with skepticism [8]