The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Cambrex beat expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share contracted significantly.
Margins contracted across the board.
Cambrex reported revenue of $67.5 million. The two analysts polled by S&P Capital IQ predicted a top line of $65.2 million on the same basis. GAAP reported sales were 4.2% higher than the prior-year quarter's $65.0 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 $0.10. The earnings estimates compiled by S&P Capital IQ predicted $0.12 per share on the same basis. GAAP EPS of $0.02 for Q4 were 88% lower 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 29.5%, 190 basis points worse than the prior-year quarter. Operating margin was 8.9%, 460 basis points worse than the prior-year quarter. Net margin was 1.1%, 600 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $66.0 million. On the bottom line, the average EPS estimate is $0.14.
Next year's average estimate for revenue is $264.4 million. The average EPS estimate is $0.56.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 58 members out of 72 rating the stock outperform, and 14 members rating it underperform. Among 14 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 12 give Cambrex a green thumbs-up, and two give it a red thumbs-down.
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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.