The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Cadence Pharmaceuticals met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP loss per share contracted.
Margins increased across the board.
Cadence Pharmaceuticals tallied revenue of $13.9 million. The 11 analysts polled by S&P Capital IQ anticipated revenue of $14.1 million on the same basis. GAAP reported sales were much higher than the prior-year quarter's $3.5 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 -$0.19. The five earnings estimates compiled by S&P Capital IQ anticipated -$0.19 per share. GAAP EPS were -$0.19 for Q3 versus -$0.34 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 56.3%, 2,180 basis points better than the prior-year quarter. Operating margin was -106.5%, 47,840 basis points better than the prior-year quarter. Net margin was -114.3%, 50,220 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $17.9 million. On the bottom line, the average EPS estimate is -$0.16.
Next year's average estimate for revenue is $51.1 million. The average EPS estimate is -$0.86.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 64 members out of 101 rating the stock outperform, and 37 members rating it underperform. Among 28 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 16 give Cadence Pharmaceuticals a green thumbs-up, and 12 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Cadence Pharmaceuticals is outperform, with an average price target of $5.65.
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