Lundbeck bullish despite 1st-qtr sales and earnings declines

Danish CNS specialist Lundbeck (LUND: CO) today announced first-quarter 2019 financials, showing that revenue reached 4,234 million  Danish kroner ($634.8 million), representing a decline of 8% (6% in local currencies) compared to the same period last year. The decline was expected and a result of generic competition on Onfi (clobazam).

Core earnings before interest and tax (EBIT) reached 1,410 million kroner corresponding to a core EBIT margin of 33.3%. EBIT reached 1,200 million kroner in the quarter, down 27.5% compared to 1,656 million kroner in 2018 and the EBIT margin reached 28.3% compared to 36.1% the year before

Earnings per share (EPS) were 4.52 kroner compared to 6.03 kroner the year before, and missing average analysts’ expectations of 4.73 kroner, and core EPS declined 19% to 5.48 kroner.