The 10-second takeaway
For the quarter ended March 31 (Q1), Omnicare beat expectations on revenues and missed estimates on earnings per share.
Compared with the prior-year quarter, revenue increased and GAAP earnings per share expanded significantly.
Gross margins expanded, operating margins contracted, net margins grew.
Omnicare notched revenue of $1.59 billion. The seven analysts polled by S&P Capital IQ predicted net sales of $1.53 billion on the same basis. GAAP reported sales were 4.4% higher than the prior-year quarter's $1.53 billion.
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 $0.63. The eight earnings estimates compiled by S&P Capital IQ anticipated $0.68 per share. GAAP EPS of $0.48 for Q1 were 92% higher than the prior-year quarter's $0.25 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 23.1%, 110 basis points better than the prior-year quarter. Operating margin was 7.8%, 10 basis points worse than the prior-year quarter. Net margin was 3.5%, 160 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.55 billion. On the bottom line, the average EPS estimate is $0.74.
Next year's average estimate for revenue is $6.21 billion. The average EPS estimate is $2.94.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 223 members out of 242 rating the stock outperform, and 19 members rating it underperform. Among 84 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 80 give Omnicare 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 Omnicare is outperform, with an average price target of $37.28.
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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. He is the 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 don't 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.