Amneal Pharmaceuticals, listed as NYSE:AMRX, is a key player in the pharmaceutical industry, focusing on the development and manufacturing of generic and specialty drugs. Despite its recent financial challenges, the company continues to demonstrate resilience in its revenue performance. Amneal competes with other pharmaceutical giants in the Zacks Medical - Drugs industry, striving to maintain its market position.
On February 28, 2025, Amneal reported an earnings per share (EPS) of -$0.10, missing the estimated EPS of $0.15. This represents a significant negative surprise of 20%, as highlighted by Zacks. In the same quarter last year, the company reported an EPS of $0.14, indicating a decline in earnings performance. However, in the previous quarter, Amneal exceeded expectations with an EPS of $0.16, showcasing its potential for positive earnings surprises.
Despite the earnings miss, Amneal's revenue performance was strong. The company reported revenues of $730.5 million, surpassing the estimated $694.5 million. This marks a 3.15% increase over the Zacks Consensus Estimate and a notable rise from the $616.98 million reported in the same period the previous year. Amneal has consistently outperformed consensus revenue estimates in the last four quarters, demonstrating its ability to generate substantial sales.
Amneal's financial metrics reveal some challenges. The company has a negative price-to-earnings (P/E) ratio of approximately -21.80, indicating negative earnings. The price-to-sales ratio is about 1.36, suggesting investors pay $1.36 for every dollar of sales. The enterprise value to sales ratio is 1.44, reflecting the company's valuation relative to its sales. Despite these challenges, Amneal maintains a current ratio of 1.41, indicating reasonable liquidity to cover short-term liabilities.
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Amneal Pharmaceuticals, Inc. (NYSE:AMRX) is a pharmaceutical company that develops, manufactures, and sells generic and specialty drugs. The company operates in a competitive industry with other pharmaceutical giants. On February 28, 2025, AMRX is set to release its quarterly earnings, with Wall Street analysts estimating earnings per share (EPS) of $0.15 and projected revenue of approximately $708 million.
Analysts forecast a 7.1% increase in EPS from the previous year, reflecting positive growth. The revenue is expected to reach $707.4 million, marking a 14.7% rise compared to the same quarter last year. This growth in revenue is a positive indicator for the company, suggesting improved sales performance and market demand for its products.
The consensus EPS estimate has remained unchanged over the past 30 days, indicating that analysts have reassessed their initial projections. Revisions to earnings projections are important as they can influence investor behavior and the short-term price performance of a stock. Studies show a strong correlation between trends in earnings estimate revisions and stock price movements.
AMRX's price-to-earnings (P/E) ratio is -14.15, indicating negative earnings. Despite this, the price-to-sales ratio of 1.45 suggests that investors are paying $1.45 for every dollar of the company's sales. The enterprise value to sales ratio is 2.41, reflecting the company's valuation in relation to its sales, while the enterprise value to operating cash flow ratio is 20.67, providing insight into cash flow generation relative to valuation.
The company's earnings yield is -7.07%, highlighting the negative earnings situation. The debt-to-equity ratio is -28.31, indicating a negative equity position, which can be concerning for investors. However, the current ratio of 1.38 suggests that AMRX has a reasonable level of liquidity to cover its short-term liabilities, providing some reassurance to investors regarding its financial stability.