Friday, May 24, 2013

Stocks DD Opines: TARO reports earnings for the Jan-March quarter

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Link to Earnings report

Sales went down from 185m(Dec quarter) to  165m(Jan-march quarter)    
Ebitda went down from 104m(Dec quarter) to 85m (adding the $22m litigation reserves)

The sales were down approx 10%. They also had litigation reserve/settlement of $22m. This appears to be some contractual price disagreements with wholesaler(s). I have asked IR what exactly this is. It does appear it is a one time adjustment.

Cash is now at a whopping $560m

There is an unconfirmed rumor that taro took price increases on 20 products in the end of march. I will investigate if this can be seen in April IMS data and post it.

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