Endo International’s and Mallinckrodt’s EPS Growth Expectations

Earnings guidance for fiscal 2019

In its fourth-quarter investor presentation, Endo International (ENDP) guided for adjusted diluted EPS and adjusted EBITDA of $2.00–$2.25 and $1.24 billion–$1.34 billion, respectively, in fiscal 2019. It expects to have ~234 million adjusted diluted shares outstanding in fiscal 2019.

In its fourth-quarter conference call, Endo guided for higher revenue, adjusted EPS, and adjusted EBITDA in the second half of 2019, mainly due to new product launches and stocking benefits from 2018’s fourth quarter. In 2019’s first quarter, the company expects its revenue to be dragged down by $15 million–$20 million due to excess stocks carried by customers in 2018’s fourth quarter. In its fourth-quarter press release, Mallinckrodt (MNK) guided for adjusted diluted EPS of $8.10–$8.40 in fiscal 2019.

Endo International’s and Mallinckrodt’s EPS Growth ExpectationsWall Street’s projections

Analysts expect Endo International’s non-GAAP EPS to be $2.32, $2.57, and $2.59 in fiscal 2019, fiscal 2020, and fiscal 2021, respectively, implying YoY changes of -19.64%, 10.85%, and 0.68%. Meanwhile, they expect Mallinckrodt’s non-GAAP EPS to be $8.02, $8.11, and $6.73 in fiscal 2019, fiscal 2020, and fiscal 2021, respectively, implying YoY changes of 0.15%, 1.10%, and -17.08%. These projections do not include the impact of the divestiture of the company’s specialty generics and Amitiza businesses, anticipated in the second half of 2019.

Mallinckrodt’s non-GAAP EPS are expected to be higher than Endo’s between fiscal 2019 and fiscal 2021. Next, we’ll discuss fiscal 2019 expense projections for Endo and Mallinckrodt.