Obagi Medical Products (Nasdaq: OMPI) reported earnings on March 8. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Obagi Medical Products met expectations on revenues and crushed expectations on earnings per share.

Compared to the prior-year quarter, revenue increased slightly and GAAP earnings per share improved significantly.

Gross margins expanded, operating margins shrank, net margins expanded.

Revenue details
Obagi Medical Products recorded revenue of $30.6 million. The six analysts polled by S&P Capital IQ predicted net sales of $30.7 million on the same basis. GAAP reported sales were 1.0% higher than the prior-year quarter's $30.3 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.27. The six earnings estimates compiled by S&P Capital IQ predicted $0.19 per share. GAAP EPS of $0.27 for Q4 were 93% higher than the prior-year quarter's $0.14 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 79.2%, 20 basis points better than the prior-year quarter. Operating margin was 26.8%, 1,260 basis points worse than the prior-year quarter. Net margin was 16.6%, 700 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $28.1 million. On the bottom line, the average EPS estimate is $0.20.

Next year's average estimate for revenue is $121.6 million. The average EPS estimate is $0.89.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 267 members out of 272 rating the stock outperform, and five members rating it underperform. Among 89 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 87 give Obagi Medical Products a green thumbs-up, and two give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Obagi Medical Products is outperform, with an average price target of $14.50.

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