Endo Pharmaceuticals (Nasdaq: ENDP) reported today that third quarter profit rose 10% as drug sales climbed during the period.
For the third quarter, the Pennsylvania-based company earned $54.2 million, or 46 cents per diluted share, compared with $49.4 million, or 42 cents in the year-ago period.
Adjusted net income, which excludes special items, was $100.8 million in the third quarter, or 86 cents per diluted share, beating analyst estimates of 84 cents per share.
Third quarter revenue was $444.1 million, compared to $361.0 million for the prior year quarter. Analysts estimated that the company would record $443 million in sales.
Branded drug sales rose 8%year-over-year, while revenue from the company's generics business increased 20% to $27.4 million.
Despite better-than-expected results, the company's shares fell 6% in intraday trading to trade at $34.49 as of 12:59 pm ET. For the year to date, however, the company has rallied roughly 68% on a series of acquisitions.
In August, the company agreed to buy Penwest Pharmaceuticals (Nasdaq: PPCO), a company that has been working with Endo for more than a decade on the development of pain-relief drug Opana, for $147 million.
The Penwest transaction would not be the last, as little more than a month later, Endo agreed to buy Qualitest Pharmaceuticals for $1.2 billion to boost its position in the generic and pain drugs business. The company's shares have gained around 11% since the Qualitest buy.
In its third quarter results today, Endo also reaffirmed its full-year revenue guidance of between $1.63 and $1.68 billion and adjusted diluted earnings of between $3.30 to $3.35 per share. Analysts estimate the company will earn $1.67 billion, or $3.34 cents per share, for 2010.
Looking ahead, Endo expects profits to grow, as it forecasts earning between $4.15 to $4.25 per share on revenue of $2.2 to $2.3 billion for fiscal 2011.
Disclosure: No position