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

*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.

$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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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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