The 10-second takeaway
For the quarter ended March 31 (Q1), Gen-Probe beat slightly on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share grew.
Margins dropped across the board.
Gen-Probe chalked up revenue of $153.4 million. The 17 analysts polled by S&P Capital IQ anticipated revenue of $150.8 million on the same basis. GAAP reported sales were 7.2% higher than the prior-year quarter's $143.0 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 $0.50. The four earnings estimates compiled by S&P Capital IQ averaged $0.51 per share. GAAP EPS of $0.49 for Q1 were 2.1% higher than the prior-year quarter's $0.48 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 65.9%, 480 basis points worse than the prior-year quarter. Operating margin was 20.6%, 440 basis points worse than the prior-year quarter. Net margin was 14.6%, 170 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $155.1 million. On the bottom line, the average EPS estimate is $0.60.
Next year's average estimate for revenue is $640.7 million. The average EPS estimate is $2.59.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 201 members out of 209 rating the stock outperform, and eight members rating it underperform. Among 66 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 65 give Gen-Probe a green thumbs-up, and one gives it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Gen-Probe is outperform, with an average price target of $70.97.
The healthcare investing landscape is littered with also-rans and a few major winners. Is Gen-Probe 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 Gen-Probe 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.