The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Impax Laboratories crushed expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue improved significantly, and GAAP earnings per share expanded significantly.
Gross margins dropped, operating margins increased, and net margins increased.
Impax Laboratories reported revenue of $158.6 million. The 11 analysts polled by S&P Capital IQ predicted a top line of $127.4 million on the same basis. GAAP reported sales were 60% higher than the prior-year quarter's $99.1 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 $0.36. The nine earnings estimates compiled by S&P Capital IQ forecast $0.19 per share on the same basis. GAAP EPS of $0.33 for Q4 were 74% higher than the prior-year quarter's $0.19 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 48.8%, 210 basis points worse than the prior-year quarter. Operating margin was 23.3%, 1,190 basis points better than the prior-year quarter. Net margin was 13.8%, 130 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $163 million. On the bottom line, the average EPS estimate is $0.48.
Next year's average estimate for revenue is $666.1 million. The average EPS estimate is $1.81.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 172 members rating the stock outperform and 11 members rating it underperform. Among 53 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 51 give Impax Laboratories a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Impax Laboratories is hold, with an average price target of $23.10.
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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.