The 10-second takeaway
For the quarter ended Dec. 31 (Q3), Alkermes beat expectations on revenue and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP loss per share dropped.
Gross margins dropped, operating margins increased, and net margins grew.
Alkermes booked revenue of $125.6 million. The 11 analysts polled by S&P Capital IQ expected a top line of $113.9 million. Sales were much higher than the prior-year quarter's $44.0 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at -$0.08. The nine earnings estimates compiled by S&P Capital IQ predicted -$0.13 per share on the same basis. GAAP EPS were -$0.11 for Q3 versus -$0.12 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 66.0%, 480 basis points worse than the prior-year quarter. Operating margin was -4.0%, 2,310 basis points better than the prior-year quarter. Net margin was -11.8%, 1,410 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $121.7 million. On the bottom line, the average EPS estimate is -$0.12.
Next year's average estimate for revenue is $369.9 million. The average EPS estimate is -$0.41.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 231 members out of 240 rating the stock outperform, and nine members rating it underperform. Among 84 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 82 give Alkermes a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Alkermes is outperform, with an average price target of $20.38.
Over the decades, small-cap stocks like Alkermes have provided market-beating returns, provided they're value-priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.
- Add Alkermes to My Watchlist.