Santarus
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Santarus beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. GAAP earnings per share grew significantly.
Gross margins contracted, operating margins expanded, net margins grew.
Revenue details
Santarus chalked up revenue of $70.2 million. The five analysts polled by S&P Capital IQ predicted revenue of $62.0 million on the same basis. GAAP reported sales were 65% higher than the prior-year quarter's $42.6 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 $0.08. The five earnings estimates compiled by S&P Capital IQ anticipated $0.01 per share. GAAP EPS of $0.08 for Q4 were 167% higher than the prior-year quarter's $0.03 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 55.3%, much worse than the prior-year quarter. Operating margin was 8.7%, 290 basis points better than the prior-year quarter. Net margin was 7.8%, 330 basis points better than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $70.7 million. On the bottom line, the average EPS estimate is $0.13.
Next year's average estimate for revenue is $323.1 million. The average EPS estimate is $0.70.
Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 138 members out of 151 rating the stock outperform, and 13 members rating it underperform. Among 31 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 27 give Santarus a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Santarus is buy, with an average price target of $11.19.
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