Hi Tech Pharmacal Crushes Earnings Estimates

Hi Tech Pharmacal (Nasdaq: HITK  ) reported earnings on Dec. 6. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Oct. 31 (Q2), Hi Tech Pharmacal beat expectations on revenues and crushed expectations on earnings per share.

Compared to the prior-year quarter, revenue grew slightly and GAAP earnings per share shrank significantly.

Margins contracted across the board.

Revenue details
Hi Tech Pharmacal logged revenue of $57.5 million. The four analysts polled by S&P Capital IQ expected sales of $55.0 million on the same basis. GAAP reported sales were 1.2% higher than the prior-year quarter's $56.9 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 $0.66. The four earnings estimates compiled by S&P Capital IQ predicted $0.53 per share. GAAP EPS of $0.66 for Q2 were 37% lower than the prior-year quarter's $1.04 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 51.4%, 730 basis points worse than the prior-year quarter. Operating margin was 22.2%, 1,130 basis points worse than the prior-year quarter. Net margin was 15.5%, 870 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $60.3 million. On the bottom line, the average EPS estimate is $0.72.

Next year's average estimate for revenue is $235.5 million. The average EPS estimate is $2.66.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 206 members out of 224 rating the stock outperform, and 18 members rating it underperform. Among 43 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 38 give Hi Tech Pharmacal a green thumbs-up, and five give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Hi Tech Pharmacal is outperform, with an average price target of $36.83.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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12/31/1969 7:00 PM
HITK $0.00 Down +0.00 +0.00%
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