The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Biogen Idec beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share grew significantly.
Gross margins contracted, operating margins contracted, and net margins expanded.
Biogen Idec logged revenue of $1.33 billion. The 17 analysts polled by S&P Capital IQ predicted a top line of $1.30 billion. Sales were 8.8% higher than the prior-year quarter's $1.22 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $1.51. The 22 earnings estimates compiled by S&P Capital IQ averaged $1.49 per share on the same basis. GAAP EPS of $1.22 for Q4 were 23% higher than the prior-year quarter's $0.99 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 89.5%, 230 basis points worse than the prior-year quarter. Operating margin was 33.2%, 210 basis points worse than the prior-year quarter. Net margin was 22.6%, 290 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.30 billion. On the bottom line, the average EPS estimate is $1.51.
Next year's average estimate for revenue is $5.29 billion. The average EPS estimate is $6.36.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 639 members out of 705 rating the stock outperform, and 66 members rating it underperform. Among 218 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 207 give Biogen Idec a green thumbs-up, and 11 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Biogen Idec is outperform, with an average price target of $123.72.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.