Miller Value Partners, an investment management firm, published its “Income Strategy” first quarter 2022 investor letter – a copy of which can be downloaded here. The Miller Income Strategy returned -10.08% for the first quarter, while the unmanaged high-yield benchmark was down -4.51%. Most asset classes declined, and smaller companies, which make up a large share of the Income Strategy, generally fared the worst. This is apparent in the Russell 2000’s -7.5% drop against the larger-cap Russell 1000’s -5.1% decline. Try to spend some time taking a look at the fund’s top 5 holdings to be informed about their best picks for 2022.
In its Q1 2022 investor letter, Miller Value Partners Income Strategy mentioned Endo International plc (NASDAQ:ENDP) and explained its insights for the company. Founded in 1997, Endo International plc (NASDAQ:ENDP) is a Dublin, Ireland-based generics and specialty branded pharmaceutical company with a $282.1 million market capitalization. Endo International plc (NASDAQ:ENDP) delivered a -68.09% return since the beginning of the year, while its 12-month returns are down by -78.61%. The stock closed at $1.20 per share on May 13, 2022.
Here is what Miller Value Partners Income Strategy has to say about Endo International plc (NASDAQ:ENDP) in its Q1 2022 investor letter:
“Endo International PLC 6.0 6/28 declined 22.1% during the period. Endo reported 4Q21 revenue of $789.4 million, +3.8% Y/Y, and ahead of consensus of $731.4 million. Adjusted EBITDA of $386.5 million, was up 9.9% Y/Y. Endo reported a loss from continuing operations of $556.7 million, compared to reported income from continuing operations of $141.2 million in 4Q20, primarily as a result of asset impairment charges and opioid settlement and litigation-related costs, which collectively amounted to $590.8 million in the period. The company’s generic pharmaceuticals segment generated 4Q revenues of $218 million, +21% Y/Y, as the segment benefited from new product launches, including the first authorized generic for IBS treatment, Amitiza. In the beginning of March, a Tennessee judge found the company liable in an opioid-marketing case by default, stripping the company of its legal defenses. Endo is now reportedly set to face a trial in 2023 that will determine the amount payable to settle charges, with analyst estimates for the company’s total liability for all cases, pegged at slightly over $1 billion.”
Photo by Myriam Zilles on Unsplash
Our calculations show that Endo International plc (NASDAQ:ENDP) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Endo International plc (NASDAQ:ENDP) was in 20 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 21 funds in the previous quarter. Endo International plc (NASDAQ:ENDP) delivered a -62.50% return in the past 3 months.
In February 2022, we also shared another hedge fund’s views on Endo International plc (NASDAQ:ENDP) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q1 page.
Disclosure: None. This article is originally published at Insider Monkey.
