Assertio Posts Higher Profitability In Q3 Despite Lower Revenues

Assertio Holdings Inc ASRT posted Q3 sales of $25.9 million, down 23% Y/Y, but surpassed the consensus of $22.04 million.
Assertio's restructuring plan resulted in cost savings of $40.0 million in 2021. The cost savings have substantially improved net income, adjusted EBITDA, and operating cash flows despite the anticipated product sales decline.
"This quarter represents the achievement of several significant milestones in the transformation of Assertio, as our restructuring has been completed, and we have now shifted our priorities to growing the business," said Dan Peisert, President and CEO.
Adjusted EBITDA increased from 5.2 million to $15.79 million.
The Company posted EPS of $0.08, a turnaround from EPS loss of $ (0.35) a year ago and well ahead of the consensus loss of $(0.04).
It generated $4.7 million of net cash flows from operating activities and reduced its debt during Q3.
Guidance: Assertio raised FY21 sales guidance to more than $103.0 million, compared to prior guidance of $91 million - $96 million.
It expects adjusted EBITDA of more than $43 million, higher than the previous guidance of $34 million - $37 million.
Price Action: ASRT shares are 20.70% at $1.34 during the market session on the last check Friday.