The Medicines Company
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), The Medicines Company beat expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share contracted significantly.
Margins dropped across the board.
The Medicines Company tallied revenue of $132.2 million. The five analysts polled by S&P Capital IQ expected revenue of $124.9 million on the same basis. GAAP reported sales were 10% higher than the prior-year quarter's $119.7 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 five earnings estimates compiled by S&P Capital IQ predicted $0.24 per share on the same basis. GAAP EPS of $0.35 for Q4 were 68% lower than the prior-year quarter's $1.09 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 66.7%, 370 basis points worse than the prior-year quarter. Operating margin was 15.2%, 230 basis points worse than the prior-year quarter. Net margin was 14.8%, 3,410 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $124.0 million. On the bottom line, the average EPS estimate is $0.17.
Next year's average estimate for revenue is $536.4 million. The average EPS estimate is $1.24.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 120 members out of 133 rating the stock outperform, and 13 members rating it underperform. Among 30 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 29 give The Medicines Company a green thumbs-up, and one gives it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on The Medicines Company is outperform, with an average price target of $22.92.
The drug and health-care investing landscape is littered with also-rans and a few major winners. Is The Medicines Company the right stock for you? Read "Discover the Next Rule-Breaking Multibagger" to learn about a company Fool co-founder David Gardner believes will be a phenomenal success over the next few years. Click here for instant access to this free report.
- Add The Medicines Company to My Watchlist.
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.