The 10-second takeaway
For the quarter ended Dec. 31 (Q4), ViroPharma met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue improved significantly, and GAAP earnings per share improved significantly.
Gross margins dropped, operating margins dropped, and net margins increased.
ViroPharma logged revenue of $145.6 million. The 13 analysts polled by S&P Capital IQ hoped for sales of $145.1 million on the same basis. GAAP reported sales were 18% higher than the prior-year quarter's $121.6 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 $0.52. The nine earnings estimates compiled by S&P Capital IQ predicted $0.44 per share on the same basis. GAAP EPS of $0.65 for Q4 were 51% higher than the prior-year quarter's $0.43 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 86.2%, 30 basis points worse than the prior-year quarter. Operating margin was 46.7%, 630 basis points worse than the prior-year quarter. Net margin was 37.2%, 640 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $152.3 million. On the bottom line, the average EPS estimate is $0.43.
Next year's average estimate for revenue is $639.9 million. The average EPS estimate is $1.83.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,233 members rating the stock outperform and 37 members rating it underperform. Among 372 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 364 give ViroPharma a green thumbs-up, and eight give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on ViroPharma is outperform, with an average price target of $29.93.
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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.