The 10-second takeaway
For the quarter ended Dec. 31 (Q4), PharMerica met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew slightly, and GAAP earnings per share expanded significantly.
Margins increased across the board.
PharMerica recorded revenue of $495.6 million. The nine analysts polled by S&P Capital IQ anticipated revenue of $501.6 million. GAAP sales were 0.8% higher than the prior-year quarter's $491.5 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.35. The nine earnings estimates compiled by S&P Capital IQ averaged $0.21 per share on the same basis. GAAP EPS of $0.26 for Q4 were 63% higher than the prior-year quarter's $0.16 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 15.8%, 270 basis points better than the prior-year quarter. Operating margin was 4.0%, 180 basis points better than the prior-year quarter. Net margin was 1.6%, 60 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $509.6 million. On the bottom line, the average EPS estimate is $0.27.
Next year's average estimate for revenue is $2.00 billion. The average EPS estimate is $1.12.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 126 members rating the stock outperform and six members rating it underperform. Among 25 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 24 give PharMerica a green thumbs-up, and one gives it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on PharMerica is hold, with an average price target of $15.71.
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