The 10-second takeaway
For the quarter ended March 31 (Q1), Questcor Pharmaceuticals 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 expanded significantly.
Gross margin shrank, operating margin grew, and net margin grew.
Questcor Pharmaceuticals booked revenue of $96.0 million. The 10 analysts polled by S&P Capital IQ predicted revenue of $90.5 million on the same basis. GAAP reported sales were much higher than the prior-year quarter's $36.8 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 $0.58. The eight earnings estimates compiled by S&P Capital IQ averaged $0.51 per share. GAAP EPS of $0.58 for Q1 were 241% higher than the prior-year quarter's $0.17 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 94.2%, 70 basis points worse than the prior-year quarter. Operating margin was 59.7%, 1,450 basis points better than the prior-year quarter. Net margin was 40.2%, 970 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $98.0 million. On the bottom line, the average EPS estimate is $0.56.
Next year's average estimate for revenue is $404.2 million. The average EPS estimate is $2.33.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 386 members out of 423 rating the stock outperform, and 37 members rating it underperform. Among 117 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 101 give Questcor Pharmaceuticals a green thumbs-up, and 16 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Questcor Pharmaceuticals is buy, with an average price target of $52.71.
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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.