The 10-second takeaway
For the quarter ended June 30 (Q3), Avanir Pharmaceuticals beat expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP loss per share dropped.
Gross margins shrank, operating margins expanded, net margins increased.
Avanir Pharmaceuticals reported revenue of $10.5 million. The five analysts polled by S&P Capital IQ predicted sales of $10.2 million on the same basis. GAAP reported sales were much higher than the prior-year quarter's $2.5 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 -$0.11. The three earnings estimates compiled by S&P Capital IQ predicted -$0.11 per share. GAAP EPS were -$0.11 for Q3 against -$0.13 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 94.7%, 50 basis points worse than the prior-year quarter. Operating margin was -139.6%, 50,750 basis points better than the prior-year quarter. Net margin was -142.6%, 50,520 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $12.9 million. On the bottom line, the average EPS estimate is -$0.09.
Next year's average estimate for revenue is $40.1 million. The average EPS estimate is -$0.46.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 190 members out of 253 rating the stock outperform, and 63 members rating it underperform. Among 55 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 35 give Avanir Pharmaceuticals a green thumbs-up, and 20 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Avanir Pharmaceuticals is outperform, with an average price target of $5.40.
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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.
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