The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Omnicare beat expectations on revenues and beat slightly on earnings per share.
Compared to the prior-year quarter, revenue was unchanged and GAAP earnings per share grew.
Gross margins expanded, operating margins shrank, and net margins improved.
Omnicare tallied revenue of $1.56 billion. The nine analysts polled by S&P Capital IQ expected revenue of $1.52 billion on the same basis. GAAP reported sales were 0.1% lower than the prior-year quarter's $1.56 billion.
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 $0.58. The 10 earnings estimates compiled by S&P Capital IQ forecast $0.57 per share on the same basis. GAAP EPS were $0.28 for Q4 compared to -$0.57 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 23.1%, 90 basis points better than the prior-year quarter. Operating margin was 6.8%, 100 basis points worse than the prior-year quarter. Net margin was 2.0%, 620 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.54 billion. On the bottom line, the average EPS estimate is $0.62.
Next year's average estimate for revenue is $6.19 billion. The average EPS estimate is $2.52.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 224 members out of 244 rating the stock outperform, and 20 members rating it underperform. Among 86 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 83 give Omnicare 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 Omnicare is outperform, with an average price target of $33.10.
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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.