The 10-second takeaway
For the quarter ended June 30 (Q2), Impax Laboratories beat expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share improved significantly.
Gross margins contracted, operating margins increased, and et margins improved.
Impax Laboratories booked revenue of $166.5 million. The 11 analysts polled by S&P Capital IQ foresaw revenue of $160.9 million on the same basis. GAAP reported sales were 32% higher than the prior-year quarter's $125.9 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 $0.60. The 11 earnings estimates compiled by S&P Capital IQ anticipated $0.44 per share. GAAP EPS of $0.27 for Q2 were 42% higher than the prior-year quarter's $0.19 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 46.8%, 60 basis points worse than the prior-year quarter. Operating margin was 21.0%, 490 basis points better than the prior-year quarter. Net margin was 11.2%, 120 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $161.5 million. On the bottom line, the average EPS estimate is $0.48.
Next year's average estimate for revenue is $635.8 million. The average EPS estimate is $2.04.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 171 members rating the stock outperform and 12 members rating it underperform. Among 47 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 43 give Impax Laboratories a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Impax Laboratories is hold, with an average price target of $24.89.
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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. The Motley Fool has no positions in the stocks mentioned above. 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.