The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Gen-Probe met expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue improved, and GAAP earnings per share dropped significantly.
Margins contracted across the board.
Gen-Probe booked revenue of $139.1 million. The 19 analysts polled by S&P Capital IQ wanted to see net sales of $140.8 million on the same basis. GAAP reported sales were 16% higher than the prior-year quarter's $136.7 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 $0.51. The 16 earnings estimates compiled by S&P Capital IQ predicted $0.54 per share on the same basis. GAAP EPS of $0.42 for Q3 were 25% lower than the prior-year quarter's $0.56 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 67.3%, 340 basis points worse than the prior-year quarter. Operating margin was 26.7%, 60 basis points worse than the prior-year quarter. Net margin was 12.6%, 730 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $158.6 million. On the bottom line, the average EPS estimate is $0.68.
Next year's average estimate for revenue is $577.1 million. The average EPS estimate is $2.32.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 205 members rating the stock outperform and 10 members rating it underperform. Among 73 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 70 give Gen-Probe a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Gen-Probe is outperform, with an average price target of $66.43.
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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.