The 10-second takeaway
For the quarter ended March 31 (Q1), Auxilium Pharmaceuticals beat expectations on revenues and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue improved significantly and GAAP loss per share shrank.
Gross margins dropped, operating margins increased, net margins grew.
Auxilium Pharmaceuticals recorded revenue of $73.6 million. The 12 analysts polled by S&P Capital IQ predicted revenue of $71.2 million on the same basis. GAAP reported sales were 26% higher than the prior-year quarter's $58.4 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 -$0.04. The 10 earnings estimates compiled by S&P Capital IQ averaged -$0.11 per share. GAAP EPS were -$0.04 for Q1 versus -$0.25 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 77.4%, 330 basis points worse than the prior-year quarter. Operating margin was -2.6%, 1,760 basis points better than the prior-year quarter. Net margin was -2.4%, 1,790 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $72.5 million. On the bottom line, the average EPS estimate is -$0.09.
Next year's average estimate for revenue is $298.2 million. The average EPS estimate is -$0.29.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 124 members out of 176 rating the stock outperform, and 52 members rating it underperform. Among 52 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 26 give Auxilium Pharmaceuticals a green thumbs-up, and 26 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Auxilium Pharmaceuticals is outperform, with an average price target of $21.92.
The drug and healthcare investing landscape is littered with also-rans and a few major winners. Is Auxilium Pharmaceuticals the right stock for you? Read "Discover the Next Rule-Breaking Multibagger" to learn about a company David Gardner believes will be a phenomenal success over the next few years. Click here for instant access to this free report.
- Add Auxilium Pharmaceuticals to My Watchlist.
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.