Zacks Research Issues Pessimistic Outlook for RDY Earnings

Key Points

• Zacks Research lowered its Q2 FY2027 EPS forecast for Dr. Reddy’s Laboratories to $0.16 from $0.17, while projecting FY2027 EPS of $0.43 and FY2029 EPS of $0.61.
• Analyst sentiment remains negative: Wall Street Zen and Goldman Sachs downgraded the stock to “Sell,” while MarketBeat reports a consensus “Reduce” rating.
• RDY recently missed quarterly earnings expectations, reporting $0.06 EPS versus the $0.09 consensus estimate. Shares opened at $12.14, below their 50-day and 200-day moving averages.

Dr. Reddy's Laboratories Ltd (NYSE:RDY - Free Report) - Equities researchers at Zacks Research cut their Q2 2027 earnings per share (EPS) estimates for shares of Dr. Reddy's Laboratories in a report issued on Monday, August 10th. Zacks Research analyst Team now expects that the company will earn $0.16 per share for the quarter, down from their prior forecast of $0.17. The consensus estimate for Dr. Reddy's Laboratories' current full-year earnings is $0.47 per share. Zacks Research also issued estimates for Dr. Reddy's Laboratories' FY2027 earnings at $0.43 EPS, Q1 2028 earnings at $0.11 EPS, Q2 2028 earnings at $0.14 EPS, Q3 2028 earnings at $0.13 EPS, Q4 2028 earnings at $0.11 EPS, FY2028 earnings at $0.50 EPS, Q1 2029 earnings at $0.14 EPS and FY2029 earnings at $0.61 EPS.

RDY has been the topic of a number of other reports. Wall Street Zen downgraded shares of Dr. Reddy's Laboratories from a "hold" rating to a "sell" rating in a research report on Saturday, July 25th. Weiss Ratings cut shares of Dr. Reddy's Laboratories from a "hold (c)" rating to a "hold (c-)" rating in a report on Thursday, July 23rd. Finally, The Goldman Sachs Group lowered shares of Dr. Reddy's Laboratories from a "neutral" rating to a "sell" rating in a research note on Thursday, April 23rd. Two research analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of "Reduce".

Dr. Reddy's Laboratories Stock Down 0.7%

RDY opened at $12.14 on Tuesday. The stock's 50 day moving average price is $13.14 and its 200 day moving average price is $13.53. The company has a debt-to-equity ratio of 0.03, a current ratio of 1.90 and a quick ratio of 1.39. The stock has a market cap of $10.13 billion, a P/E ratio of 27.59, a P/E/G ratio of 2.45 and a beta of 0.29. Dr. Reddy's Laboratories has a 12 month low of $11.36 and a 12 month high of $15.67.

Dr. Reddy's Laboratories (NYSE:RDY - Get Free Report) last posted its quarterly earnings results on Thursday, July 23rd. The company reported $0.06 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.09 by ($0.03). The business had revenue of $850.26 million during the quarter, compared to the consensus estimate of $850.56 million. Dr. Reddy's Laboratories had a return on equity of 9.49% and a net margin of 10.15%.

Institutional Investors Weigh In On Dr. Reddy's Laboratories

A number of institutional investors have recently bought and sold shares of RDY. Zurcher Kantonalbank Zurich Cantonalbank grew its stake in shares of Dr. Reddy's Laboratories by 13.6% in the 4th quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 6,341 shares of the company's stock valued at $89,000 after buying an additional 760 shares in the last quarter. EWA LLC lifted its stake in Dr. Reddy's Laboratories by 7.0% in the fourth quarter. EWA LLC now owns 12,465 shares of the company's stock valued at $175,000 after acquiring an additional 818 shares during the last quarter. Rockefeller Capital Management L.P. grew its position in Dr. Reddy's Laboratories by 67.0% in the fourth quarter. Rockefeller Capital Management L.P. now owns 2,047 shares of the company's stock worth $29,000 after acquiring an additional 821 shares in the last quarter. Stifel Financial Corp increased its stake in shares of Dr. Reddy's Laboratories by 3.8% during the 4th quarter. Stifel Financial Corp now owns 23,464 shares of the company's stock worth $329,000 after purchasing an additional 861 shares during the last quarter. Finally, Groupama Asset Managment raised its holdings in shares of Dr. Reddy's Laboratories by 1.7% during the 4th quarter. Groupama Asset Managment now owns 55,419 shares of the company's stock valued at $778,000 after purchasing an additional 912 shares in the last quarter. 3.85% of the stock is currently owned by institutional investors and hedge funds.

About Dr. Reddy's Laboratories

Dr. Reddy's Laboratories Ltd. is an India‐based multinational pharmaceutical company that develops, manufactures and markets a wide range of pharmaceutical products and services. Established in 1984 by the late Dr. Kallam Anji Reddy, the company has grown into a diversified healthcare enterprise offering generic and proprietary medicines, active pharmaceutical ingredients (APIs), biosimilars and custom research and manufacturing services (CRAMS). Its portfolio spans therapeutic areas such as oncology, cardiovascular care, dermatology, gastroenterology and pain management.

The company's core activities include the development and commercialization of cost‐effective generic treatments for branded drugs that have lost patent protection, along with in‐house research into innovative molecule development.

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