On Oct. 25, ImClone Systems (NASDAQ:IMCL) released third-quarter earnings for the period ended Sept. 30, 2006.

  • Revenues missed analysts' estimates by 6.8%, while EPS exceeded the estimates by $0.20.
  • EPS increased 85.7% to $0.65 because of great top-line performance.
  • Revenues increased 41.5%, primarily because of a large uptick in royalty revenue.
  • Gross margins declined 756 basis points on account of a huge increase in cost of manufacturing revenue.
  • Operating margins greatly improved thanks to robust revenue growth and restrained spending.
  • Cash increased 25.6% to $991.0 million.

(Figures in millions, except per-share data)

Income Statement Highlights

Avg. Est.

Q3 2006

Q3 2005

Change

Sales

$162

$150.7

$106.5

41.5%

Net Profit

--

$57.3

$31.0

85.2%

EPS

$0.45

$0.65

$0.35

85.7%

Diluted Shares

--

91.9

92.1

(0.2%)



Get back to basics with a look at the income statement.

Margin Checkup

Q3 2006

Q3 2005

Change*

Gross Margin**

75.29%

82.85%

(7.6%)

Operating Margin

38.19%

24.65%

13.5%

Net Margin

38.06%

29.06%

9%

*Expressed in percentage points.
**Cost of manufacturing revenue assumed as COGS.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q3 2006

Q3 2005

Change

Cash + ST Invest.

$991.5

$790

25.6%

Accounts Rec.

N/A

$66.5

N/A

Inventory

$58.9

$73.2

(19.5%)



Liabilities

Q3 2006

Q3 2005

Change

Accounts Payable

N/A

$40.2

N/A

Long-Term Debt

$603.6

$600

0.6%



Learn the ways of the balance sheet.

Cash Flow Highlights
No cash flow statement provided. Boo!

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