The 10-second takeaway
For the quarter ended Sep. 30 (Q3), ViroPharma missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue contracted significantly and GAAP earnings per share shrank to a loss.
Margins shrank across the board.
ViroPharma recorded revenue of $91.0 million. The 14 analysts polled by S&P Capital IQ looked for a top line of $99.2 million on the same basis. GAAP reported sales were 36% lower 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 $0.10. The seven earnings estimates compiled by S&P Capital IQ averaged $0.13 per share. GAAP EPS were -$0.07 for Q3 against $0.35 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 76.3%, 960 basis points worse than the prior-year quarter. Operating margin was -4.6%, 4,730 basis points worse than the prior-year quarter. Net margin was -5.0%, 2,480 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $116.4 million. On the bottom line, the average EPS estimate is $0.20.
Next year's average estimate for revenue is $446.4 million. The average EPS estimate is $0.80.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 1,205 members out of 1,247 rating the stock outperform, and 42 members rating it underperform. Among 311 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 302 give ViroPharma a green thumbs-up, and nine give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on ViroPharma is outperform, with an average price target of $32.82.
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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.