The 10-second takeaway
For the quarter ended Dec. 31 (Q4), ISTA Pharmaceuticals missed estimates on revenues and beat expectations on earnings per share.
Compared with the prior-year quarter, revenue contracted and GAAP loss per share grew.
Gross margins increased, operating margins improved, net margins dropped.
ISTA Pharmaceuticals tallied revenue of $45.1 million. The four analysts polled by S&P Capital IQ foresaw a top line of $46.6 million on the same basis. GAAP reported sales were 12% lower than the prior-year quarter's $51.1 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 $0.25. The four earnings estimates compiled by S&P Capital IQ predicted $0.21 per share on the same basis. GAAP EPS were -$0.38 for Q4 compared to -$0.25 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 76.3%, 60 basis points better than the prior-year quarter. Operating margin was 22.3%, 610 basis points better than the prior-year quarter. Net margin was -35.3%, 1,880 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $41.8 million. On the bottom line, the average EPS estimate is $0.04.
Next year's average estimate for revenue is $193.4 million. The average EPS estimate is $0.31.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 94 members out of 109 rating the stock outperform, and 16 members rating it underperform. Among 25 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 19 give ISTA Pharmaceuticals a green thumbs-up, and six give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on ISTA Pharmaceuticals is hold, with an average price target of $10.00.
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