The 10-second takeaway
For the quarter ended March 31 (Q1), Cambrex beat expectations on both revenue and earnings per share.
Compared to the prior-year quarter, both revenue and GAAP earnings per share increased significantly.
Margins grew across the board.
Cambrex booked revenue of $70.2 million. The two analysts polled by S&P Capital IQ expected revenue of $65.2 million on the same basis. GAAP-reported sales were 16% higher than the prior-year quarter's $60.6 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 $0.24. The two earnings estimates compiled by S&P Capital IQ predicted $0.14 per share. GAAP EPS of $0.24 for Q1 were 167% higher than the prior-year quarter's $0.09 per share. (The prior-year quarter included $0 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 31.9%, 310 basis points better than the prior-year quarter. Operating margin was 14.4%, 570 basis points better than the prior-year quarter. Net margin was 10%, 550 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $70.4 million. On the bottom line, the average EPS estimate is $0.18.
Next year's average estimate for revenue is $264.7 million. The average EPS estimate is $0.56.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 57 members rating the stock outperform and 13 members rating it underperform. Among 12 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 10 give Cambrex a green thumbs-up, and two give it a red thumbs-down.
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