DepoMed
The 10-second takeaway
For the quarter ended March 31 (Q1), DepoMed missed estimates on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly. GAAP loss per share dropped.
Gross margins contracted, operating margins grew, net margins grew.
Revenue details
DepoMed reported revenue of $26.2 million. The four analysts polled by S&P Capital IQ expected sales of $28.3 million on the same basis. GAAP reported sales were 55% higher than the prior-year quarter's $16.8 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 -$0.10. The four earnings estimates compiled by S&P Capital IQ anticipated -$0.06 per share. GAAP EPS were -$0.10 for Q1 against -$0.16 per share for the prior-year quarter.
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 94.3%, 260 basis points worse than the prior-year quarter. Operating margin was -21.1%, much better than the prior-year quarter. Net margin was -20.9%, much better than the prior-year quarter. (Margins calculated in GAAP terms.)
Looking ahead
Next quarter's average estimate for revenue is $31.1 million. On the bottom line, the average EPS estimate is -$0.01.
Next year's average estimate for revenue is $128.4 million. The average EPS estimate is -$0.02.
Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 225 members out of 243 rating the stock outperform, and 18 members rating it underperform. Among 45 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 42 give DepoMed a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on DepoMed is buy, with an average price target of $9.13.
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