The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Alere met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share dropped to a loss.
Margins dropped across the board.
Alere booked revenue of $691.4 million. The 12 analysts polled by S&P Capital IQ looked for revenue of $690.8 million on the same basis. GAAP reported sales were 18% higher than the prior-year quarter's $585.8 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.43. The 11 earnings estimates compiled by S&P Capital IQ anticipated $0.53 per share. GAAP EPS were -$0.11 for Q3 versus $2.48 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 50.0%, 220 basis points worse than the prior-year quarter. Operating margin was 5.6%, 240 basis points worse than the prior-year quarter. Net margin was -0.6%, 4,150 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $719.3 million. On the bottom line, the average EPS estimate is $0.61.
Next year's average estimate for revenue is $2.78 billion. The average EPS estimate is $2.34.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Alere is outperform, with an average price target of $25.17.
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