On Feb. 20, Elan (NYSE:ELN) released fourth-quarter earnings for the period ended Dec. 31.
- Revenue increased by 18.5% to $166.4 million on solid growth in product revenues, primarily from Tysabri and Azactam.
- In 2007, the company expects revenues excluding Tysabri to exceed $500 million, with gross margins ranging from 60% to 65%.
- Management anticipates that 2007 EBITDA margins will break even, on account of strong revenue growth and reduced selling and research expenses, which are targeted at roughly $600 million-$650 million.
- Elan is a three-star stock in CAPS, the Fool's stock ratings service. Have an opinion on Elan's prospects? Come in and vote!
(Figures in millions, except per-share data)
Income Statement Highlights
|
Q4 2006 |
Q4 2005 |
Change | |
|---|---|---|---|
|
Sales |
$166.4 |
$140.4 |
18.5% |
|
Net Profit |
($26.5) |
($58.3) |
N/A |
|
EPS |
($0.06) |
($0.14) |
N/A |
|
Diluted Shares |
443.1 |
427.0 |
3.8% |
Get back to basics with a look at the income statement.
Margin Checkup
|
Q4 2006 |
Q4 2005 |
Change* | |
|---|---|---|---|
|
Gross Margin |
59.6% |
67.4% |
(7.8) |
|
Operating Margin |
(3.4%) |
(21.9%) |
18.5 |
|
Net Margin |
(15.9%) |
(41.5%) |
25.6 |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
|
Assets |
Q4 2006 |
Q4 2005 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$1,521.8 |
$1,090.7 |
39.5% |
|
Accounts Rec. |
No Data |
No Data |
No Data |
|
Inventory |
No Data |
No Data |
No Data |
|
Liabilities |
Q4 2006 |
Q4 2005 |
Change |
|---|---|---|---|
|
Accounts Payable |
$266.9 |
$246.7 |
8.2% |
|
Long-Term Debt |
$2,378.2 |
$2,017.2 |
17.9% |
Learn the ways of the balance sheet.
Cash Flow Highlights
Alas, Elan failed to treat investors' case of acute lack-of-cash-flow-statement-itis.
Find out why Fools always follow the money.
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- Biogen Idec (NASDAQ:BIIB)
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- Sepracor (NASDAQ:SEPR)
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- Genzyme (NASDAQ:GENZ)
Related Foolishness:
Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.
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