Endo Pharmaceuticals (ENDP) just topped Wall Street estimates, sending the stock and estimates higher, but still trades at a great value.
Company Description
Endo Pharmaceuticals makes branded and generic drugs to treat and manage pain. The Pennsylvania-based company has about 1,200 employees and a market cap of $2.6 billion.
Beat the Street
On Feb 22 Endo Pharmaceuticals reported fourth-quarter results that included revenue of $391 million, a 13% increase since last year. Net income more than doubled to $148 million, up from $73 million.
Earnings per share came in at 81 cents, beating the Zacks Consensus Estimates by 13 cents.
2010 Projections
Endo Pharmaceuticals also provided a forecast for 2010 in the release. The company projects revenues of $1.55 and $1.60 billion, compared to the $1.46 billion in 2009.
The CEO’s comments highlighted the record year for revenues and earnings, as well as the commitment to “aggressive growth” in 2010.
Estimates Pop
Endo analysts quickly raised full-year estimates for this year and 2011. The Zacks Consensus for 2010 is up 28 cents, to $3.16, an 11% growth rate. Next year’s estimates are averaging $3.18, up 24 cents.
The Chart
On top of all that, shares of ENDO are trading at a great value, even after the spike following the quarterly results. The forward P/E is just 7 times and the PEG ratio is 0.7 times.
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