The 10-second takeaway
For the quarter ended March 31 (Q1), ViroPharma missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share dropped significantly.
Margins shrank across the board.
ViroPharma chalked up revenue of $135.8 million. The 13 analysts polled by S&P Capital IQ anticipated revenue of $148.4 million on the same basis. GAAP reported sales were 6.9% higher than the prior-year quarter's $127.0 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 $0.25. The nine earnings estimates compiled by S&P Capital IQ predicted $0.42 per share. GAAP EPS of $0.26 for Q1 were 35% lower than the prior-year quarter's $0.40 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 76.4%, 870 basis points worse than the prior-year quarter. Operating margin was 29.7%, 1,790 basis points worse than the prior-year quarter. Net margin was 14.7%, 1,400 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $120.2 million. On the bottom line, the average EPS estimate is $0.22.
Next year's average estimate for revenue is $494.1 million. The average EPS estimate is $1.17.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,209 members out of 1,251 rating the stock outperform, and 42 members rating it underperform. Among 304 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 296 give ViroPharma a green thumbs-up, and eight give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on ViroPharma is outperform, with an average price target of $33.07.
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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.