Hi-Tech Pharmacal Co., Inc.
) reported fourth quarter fiscal 2013 (ended Apr 30, 2013)
earnings of 50 cents per share, well below the Zacks Consensus
Estimate of 68 cents and down 38.3% from the year-ago period.
Lower-than-expected revenues contributed to the earnings miss in
the final quarter of fiscal 2013.
Fourth quarter revenues were $58.5 million, down 4.6% year
over year. Revenues missed the Zacks Consensus Estimate of $66
Revenues at Hi-Tech Pharmacal were hurt by lower sales
of Fluticasone nasal spray. Lower pricing hurt the sales of the
drug. A slower-than-normal start to the allergy season also led
to the weak revenues recorded in the quarter..
Fiscal year 2013 earnings were $2.28 per share, down 40.8%
year over year. The Zacks Consensus Estimate for fiscal 2013
stood at $2.40 per share. Revenues in 2013 rose 10.4% year
over year to $232.4 million. Revenues for 2013 were below the
Zacks Consensus Estimate of $239 million.
Research and development expenses for fiscal 2013, increased
41.4% year over year to $17.3 million due to increased spending
on internal projects for the generic pharmaceuticals division.
Selling, general and administrative expenses rose 19.9% to $53.6
million in fiscal 2013 due to costs incurred towards
restructuring of sales organization.
Hi-Tech Pharmacal reports revenues under three segments -
generic pharmaceuticals (Hi-tech generic), OTC branded
pharmaceuticals (Health Care Products) and prescription brands
Revenues at the generic pharmaceuticals segment in the
reported quarter were down 7.2% year over year to $48.9 million.
Lower revenues of Fluticasone Propionate nasal spray (down 31%
year over year to $19.6 million) were primarily responsible for
Revenues at the Health Care Products division were down 7%
from the prior-year quarter to $4.9 million. Sales continued to
be affected by lower sales of diabetes drug Tussin.
Sales from the ECR division increased 40% to $4.7 million
mainly driven by TussiCaps and Bupap sales.
Hi-Tech Pharmacal expects a top line growth this year across
all its businesses. The new generic launches will drive the
generic increase. However, Hi-Tech Pharmacal expects declining
sales of Fluticasone. Hi-Tech Pharmacal expects double-digit
growth in its Health Care Products and ECR divisions.
Hi-Tech Pharmacal carries a Zacks Rank #3 (Hold). Right now,
Lannett Company, Inc.
) look well positioned in the pharma space with a Zacks Rank #1
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