The 10-second takeaway
For the quarter ended Jan. 31 (Q3), Hi-Tech Pharmacal beat expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue improved and GAAP earnings per share stayed the same.
Margins dropped across the board.
Hi Tech Pharmacal recorded revenue of $55.6 million. The four analysts polled by S&P Capital IQ wanted to see a top line of $54.2 million on the same basis. GAAP reported sales were 11% higher than the prior-year quarter's $50.0 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.79. The four earnings estimates compiled by S&P Capital IQ predicted $0.83 per share. GAAP EPS of $0.79 were the same as the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 55.3%, 120 basis points worse than the prior-year quarter. Operating margin was 28.0%, 60 basis points worse than the prior-year quarter. Net margin was 19.4%, 90 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $56.3 million. On the bottom line, the average EPS estimate is $0.81.
Next year's average estimate for revenue is $223.3 million. The average EPS estimate is $3.69.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 221 members out of 240 rating the stock outperform, and 19 members rating it underperform. Among 60 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 56 give Hi-Tech Pharmacal a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Hi-Tech Pharmacal is hold, with an average price target of $37.
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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.