Hi Tech Pharmacal Co. Earnings: Here’s Why Investors are Selling Shares Now
Hi Tech Pharmacal Co. Inc. (NASDAQ:HITK) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 7.61%.
Hi Tech Pharmacal Co. Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased 31.51% to $0.50 in the quarter versus EPS of $0.73 in the year-earlier quarter.
Revenue: Decreased 4.55% to $58.5 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Hi Tech Pharmacal Co. Inc. reported adjusted EPS income of $0.50 per share. By that measure, the company missed the mean analyst estimate of $0.63. It missed the average revenue estimate of $66.33 million.
Quoting Management: David Seltzer, President and CEO, commented: “The Company showed growth while facing several challenges along the way. Pricing of Fluticasone Nasal Spray, our best selling product saw steeper price declines than we expected throughout the fiscal year. However we continue to reduce our costs to partially offset this pricing decline. In addition, we had some one-time expenses associated with restructuring the ECR sales force under new leadership of Dr. Cameron Durrant. In our Health Care Products division, we spent more heavily on advertising to promote consumer products Nasal Ease® and Sinus Buster®, which we acquired last year. We believe that the investment we made in each of our branded divisions will enable them to grow and become more profitable. The increase in research and development spending in our generic division enabled us to build a pipeline of products developed in house and some recently licensed products which will drive our future growth.”
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