Epocrates
The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Epocrates met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped slightly and GAAP earnings per share dropped to a loss.
Gross margins shrank, operating margins expanded, net margins dropped.
Revenue details
Epocrates notched revenue of $26.0 million. The four analysts polled by S&P Capital IQ predicted revenue of $26.0 million on the same basis. GAAP reported sales were 2.2% lower than the prior-year quarter's $26.6 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS details
EPS came in at $0.02. The four earnings estimates compiled by S&P Capital IQ forecast $0.01 per share. GAAP EPS were -$0.02 for Q3 against $0.03 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
Margin details
For the quarter, gross margin was 58.5%, 70 basis points worse than the prior-year quarter. Operating margin was -4.3%, 80 basis points better than the prior-year quarter. Net margin was -2.3%, 490 basis points worse than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $29.4 million. On the bottom line, the average EPS estimate is $0.04.
Next year's average estimate for revenue is $109.7 million. The average EPS estimate is $0.18.
Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 34 members out of 37 rating the stock outperform, and three members rating it underperform. Among eight CAPS All-Star picks (recommendations by the highest-ranked CAPS members), eight give Epocrates a green thumbs-up, and give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Epocrates is outperform, with an average price target of $11.00.
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