Lannett Clocks 30% Top-Line Decline In Q4, Forecasts Lower FY23 Sales

Lannett Company Inc (NYSE:LCI) reported Q4 FY22 sales of $74.2 million, down from $106 million a year ago, slightly below the consensus of $74.65 million.
Adjusted gross margin compressed to 14% from 25% a year ago.
"For the quarter, net sales were in line with our expectations, adjusted EBITDA was at the top end of our guidance range and adjusted gross margin was better than anticipated, rebounding from our adjusted gross margin in recent quarters," said Tim Crew, CEO.
Lannett posted an adjusted EPS loss of $(0.44) compared $(0.19) a year ago, beating the consensus of $(0.46).
"Looking ahead, our efforts will be focused on commercializing recently added product opportunities, which we believe will help increase our full-year gross margin in fiscal 2023. At the same time, we intend to maintain the operating discipline to reduce expenses and make the most of our cash resources."
Guidance: Lannett expects FY23 sales of $275-$300 million, lower than FY22 sales of $340.6 million.
It forecasts an adjusted EBITDA loss of $(12) million to $0 million, with an adjusted gross margin of 15% - 17%
Price Action: LCI shares closed 5.10% lower at $0.56 during after-hours trading on Wednesday.

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