The 10-second takeaway
For the quarter ended March 31 (Q1), Alere beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share contracted to a loss.
Gross margins dropped, operating margins shrank, net margins increased.
Alere reported revenue of $671.1 million. The 12 analysts polled by S&P Capital IQ looked for revenue of $658.8 million on the same basis. GAAP reported sales were 15% higher than the prior-year quarter's $582.5 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 $0.77. The 11 earnings estimates compiled by S&P Capital IQ forecast $0.67 per share. GAAP EPS were -$0.05 for Q1 against $0.09 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 52.6%, 20 basis points worse than the prior-year quarter. Operating margin was 5.2%, 170 basis points worse than the prior-year quarter. Net margin was 0.2%, 20 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $656.6 million. On the bottom line, the average EPS estimate is $0.60.
Next year's average estimate for revenue is $2.68 billion. The average EPS estimate is $2.67.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Alere is outperform, with an average price target of $30.30.
The healthcare investing landscape is littered with also-rans and a few major winners. Is Alere performing well enough for you? Read "Discover the Next Rule-Breaking Multibagger" to learn about a company David Gardner believes will deliver amazing returns during the next few years. Click here for instant access to this free report.
- Add Alere 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.