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Array BioPharma Outruns Estimates Again

By Seth Jayson | More Articles
February 8, 2012 | Comments (1)

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Array BioPharma (Nasdaq: ARRY  ) reported earnings on Feb. 2. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q2), Array BioPharma beat expectations on revenues and exceeded expectations on earnings per share.

Compared to the prior-year quarter, revenue increased significantly and GAAP loss per share dropped.

Margins increased across the board.

Revenue details
Array BioPharma reported revenue of $23.2 million. The eight analysts polled by S&P Capital IQ foresaw a top line of $21.8 million. Sales were 41% higher than the prior-year quarter's $16.5 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
EPS came in at -$0.06. The seven earnings estimates compiled by S&P Capital IQ predicted -$0.12 per share. GAAP EPS were -$0.06 for Q2 against -$0.23 per share for the prior-year quarter.

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Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 73.0%, 1,770 basis points better than the prior-year quarter. Operating margin was 0.1%, 5,630 basis points better than the prior-year quarter. Net margin was -16.4%, 5,900 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $19.0 million. On the bottom line, the average EPS estimate is -$0.17.

Next year's average estimate for revenue is $85.8 million. The average EPS estimate is -$0.46.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 216 members out of 225 rating the stock outperform, and nine members rating it underperform. Among 71 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 69 give Array BioPharma a green thumbs-up, and two give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Array BioPharma is outperform, with an average price target of $4.50.

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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On February 08, 2012, at 2:57 PM, usubanas wrote:

    hi Seth,

    your article starts with "Here are the numbers you need to know."

    more appropriate would be "Here are the numbers you DO NOT need to know."

    especially funny: margins. margins of what?

    in case you are not aware, ARRY is a development biotech with no real revenues since they have no approved products. clinical trials and pipeline news is what matters, not how much they spent on Staples or pipette tips for the quarter.

    all the revenues they reported are milestone fees or upfront payments from collaborators, which are always announced when they happen in press releases. if you want to give some meaningful financial info, then mention the quarterly cash burn and how much cash they have left.

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