Akorn
The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Akorn met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share dropped.
Gross margins dropped, operating margins grew, net margins contracted.
Revenue details
Akorn logged revenue of $69.6 million. The eight analysts polled by S&P Capital IQ predicted sales of $69.6 million on the same basis. GAAP reported sales were 90% higher than the prior-year quarter's $36.7 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 $0.12. The six earnings estimates compiled by S&P Capital IQ averaged $0.11 per share. GAAP EPS of $0.12 for Q3 were 7.7% lower than the prior-year quarter's $0.13 per share.
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 57.6%, 230 basis points worse than the prior-year quarter. Operating margin was 33.2%, 770 basis points better than the prior-year quarter. Net margin was 19.8%, 1,700 basis points worse than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $75.5 million. On the bottom line, the average EPS estimate is $0.13.
Next year's average estimate for revenue is $260.1 million. The average EPS estimate is $0.38.
Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 163 members out of 175 rating the stock outperform, and 12 members rating it underperform. Among 44 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 37 give Akorn a green thumbs-up, and seven give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Akorn is outperform, with an average price target of $16.43.
- Add Akorn to My Watchlist.
