The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Par Pharmaceutical beat expectations on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share improved significantly.
Margins grew across the board.
Par Pharmaceutical tallied revenue of $253.6 million. The nine analysts polled by S&P Capital IQ expected sales of $231.5 million on the same basis. GAAP reported sales were 12% higher than the prior-year quarter's $227.0 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 $0.78. The seven earnings estimates compiled by S&P Capital IQ predicted $0.74 per share on the same basis. GAAP EPS of $1.43 for Q4 were 198% higher than the prior-year quarter's $0.48 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 43.8%, 180 basis points better than the prior-year quarter. Operating margin was 17.5%, 230 basis points better than the prior-year quarter. Net margin was 20.4%, 1,270 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $232.6 million. On the bottom line, the average EPS estimate is $0.74.
Next year's average estimate for revenue is $989.9 million. The average EPS estimate is $3.56.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Par Pharmaceutical is outperform, with an average price target of $36.14.
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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.