The 10-second takeaway
For the quarter ended March 31 (Q1), Akorn beat expectations on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share expanded significantly.
Gross margin grew, operating margin grew, and net margin shrank.
Akorn logged revenue of $51.7 million. The four analysts polled by S&P Capital IQ looked for sales of $48.9 million on the same basis. GAAP reported sales were much higher than the prior-year quarter's $25.4 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 $0.08. The three earnings estimates compiled by S&P Capital IQ predicted $0.07 per share. GAAP EPS of $0.08 for Q1 were 33% higher than the prior-year quarter's $0.06 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 59.8%, 380 basis points better than the prior-year quarter. Operating margin was 30.9%, 850 basis points better than the prior-year quarter. Net margin was 16.4%, 640 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $59.7 million. On the bottom line, the average EPS estimate is $0.09.
Next year's average estimate for revenue is $256.1 million. The average EPS estimate is $0.44.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 166 members out of 179 rating the stock outperform, and 13 members rating it underperform. Among 44 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 37 give Akorn a green thumbs-up, and seven give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Akorn is buy, with an average price target of $14.50.
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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.