DepoMed (Nasdaq: DEPO) reported earnings yesterday. Here are the numbers you need to know.

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

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

Gross margins increased, operating margins shrank, and net margins dropped.

Revenue details
DepoMed tallied revenue of $12.1 million. The five analysts polled by S&P Capital IQ anticipated net sales of $10.8 million on the same basis. GAAP reported sales were 42% lower than the prior-year quarter's $20.9 million.

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

EPS details
EPS came in at -$0.25. The five earnings estimates compiled by S&P Capital IQ predicted -$0.31 per share. GAAP EPS were -$0.25 for Q4 versus $0.03 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 94.9%, 30 basis points better than the prior-year quarter. Operating margin was -283.1%, 28,890 basis points worse than the prior-year quarter. Net margin was -291.6%, 29,980 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $12.1 million. On the bottom line, the average EPS estimate is -$0.25.

Next year's average estimate for revenue is $67.2 million. The average EPS estimate is -$0.69.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 237 members rating the stock outperform and 16 members rating it underperform. Among 50 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 47 give DepoMed a green thumbs-up, and three give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on DepoMed is buy, with an average price target of $7.67.

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