Epocrates (Nasdaq: EPOC) reported earnings on Feb. 28. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Epocrates beat expectations on revenues and exceeded expectations on earnings per share.

Compared to the prior-year quarter, revenue shrank slightly and GAAP earnings per share contracted to a loss.

Margins dropped across the board.

Revenue details
Epocrates booked revenue of $29.7 million. The five analysts polled by S&P Capital IQ predicted a top line of $28.1 million on the same basis. GAAP reported sales were 1.9% lower than the prior-year quarter's $30.3 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Non-GAAP EPS came in at $0.05. The five earnings estimates compiled by S&P Capital IQ predicted $0 per share on the same basis. GAAP EPS were -$0.27 for Q4 versus $0.18 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 60.6%, 1,170 basis points worse than the prior-year quarter. Operating margin was -6.5%, 1,900 basis points worse than the prior-year quarter. Net margin was -22.0%, 3,080 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $28.7 million. On the bottom line, the average EPS estimate is $0.03.

Next year's average estimate for revenue is $119.0 million. The average EPS estimate is $0.22.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 34 members out of 38 rating the stock outperform, and four members rating it underperform. Among 10 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), eight give Epocrates 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 Epocrates is hold, with an average price target of $12.50.

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