On Feb. 12, Cephalon (NASDAQ:CEPH) released fourth-quarter earnings for the period ended Dec. 31.

  • Revenues increased by 44% to $484.7 million, predominantly because of strong Provigil sales and the launch of Fentora.
  • The company estimates first-quarter 2007 revenues to be in the range of $400 million-$410 million and net income to be around $59 million-$66 million.
  • Cephalon is a three-star stock in CAPS, the Motley Fool's community-based stock-rating service.

(Figures in millions, except per-share data)

Income Statement Highlights

Q4 2006

Q4 2005

Change

Sales

$484.7

$336.4

44.1%

Net Profit

($4.9)

$18.1

N/A

EPS

($0.08)

$0.30

N/A

Diluted Shares

61.8

60.4

2.4%



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

Margin Checkup

Q4 2006

Q4 2005

Change*

Gross Margin

86.1%

85.1%

1.0

Operating Margin

8.8%

(20.5%)

29.4

Net Margin

(1.0%)

5.6%

(6.6)

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q4 2006

Q4 2005

Change

Cash + ST Invest.

$521.7

$484.1

7.8%

Accounts Rec.

$270.0

$199.1

35.6%

Inventory

$174.3

$137.9

26.4%



Liabilities

Q4 2006

Q4 2005

Change

Accounts Payable

$90.6

$53.7

68.7%

Long-Term Debt

$1,248.3

$1,696.3

(26.4%)



Learn the ways of the balance sheet.

Cash Flow Highlights

2006

2005

Change

Cash From Ops.

$319.9

$185.7

72.2%

Capital Expenditures

$159.9

$118.1

35.5%

Free Cash Flow

$160.0

$67.7

136.4%



Find out why Fools always follow the money.

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Related Foolishness:

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