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.
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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.
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