ISTA Pharmaceuticals (Nasdaq: ISTA) reported earnings on May 3. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), ISTA Pharmaceuticals whiffed on revenues and beat expectations on earnings per share.

Compared with the prior-year quarter, revenue shrank and GAAP loss per share dropped. The non-GAAP profit was a surprise, as analysts had predicted a loss.

Margins improved across the board.

Revenue details
ISTA Pharmaceuticals booked revenue of $34.0 million. The four analysts polled by S&P Capital IQ expected revenue of $38.8 million on the same basis. GAAP reported sales were 7.4% lower than the prior-year quarter's $36.7 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 $0.06. The four earnings estimates compiled by S&P Capital IQ predicted -$0.11 per share. GAAP EPS were -$0.43 for Q1 against -$2.49 per share for the prior-year quarter.

Margin details
For the quarter, gross margin was 106.7%, 3,180 basis points better than the prior-year quarter. Operating margin was -4.7%, 2,190 basis points better than the prior-year quarter. Net margin was -52.3%, 17,670 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $48.7 million. On the bottom line, the average EPS estimate is $0.03.

Next year's average estimate for revenue is $189.8 million. The average EPS estimate is $0.50.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 95 members out of 108 rating the stock outperform, and 14 members rating it underperform. Among 20 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 17 give ISTA Pharmaceuticals a green thumbs-up, and three give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on ISTA Pharmaceuticals is hold, with an average price target of $9.05.

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