The 10-second takeaway
For the quarter ended March 31 (Q1), Impax Laboratories whiffed on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue improved significantly and GAAP earnings per share dropped.
Margins dropped across the board.
Impax Laboratories recorded revenue of $128.6 million. The 11 analysts polled by S&P Capital IQ expected to see revenue of $165.1 million on the same basis. GAAP reported sales were 18% higher than the prior-year quarter's $108.7 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 $0.52. The 11 earnings estimates compiled by S&P Capital IQ forecast $0.45 per share. GAAP EPS of $0.18 for Q1 were 14% lower than the prior-year quarter's $0.21 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 48.7%, 520 basis points worse than the prior-year quarter. Operating margin was 17.5%, 320 basis points worse than the prior-year quarter. Net margin was 9.6%, 320 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $165.6 million. On the bottom line, the average EPS estimate is $0.45.
Next year's average estimate for revenue is $671.4 million. The average EPS estimate is $1.82.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 167 members rating the stock outperform and 11 members rating it underperform. Among 41 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 39 give Impax Laboratories 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 Impax Laboratories is outperform, with an average price target of $24.89.
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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.