The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Omnicare missed estimates on revenues and whiffed on earnings per share.
Compared to the prior-year quarter, revenue shrank slightly and GAAP earnings per share grew significantly.
Margins expanded across the board.
Omnicare reported revenue of $1.50 billion. The seven analysts polled by S&P Capital IQ foresaw sales of $1.54 billion on the same basis. GAAP reported sales were 2.8% lower than the prior-year quarter's $1.54 billion.
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 $0.65. The eight earnings estimates compiled by S&P Capital IQ anticipated $0.73 per share. GAAP EPS of $0.55 for Q3 were 129% higher than the prior-year quarter's $0.24 per share. (The prior-year quarter included -$0.09 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 24.7%, 230 basis points better than the prior-year quarter. Operating margin was 8.9%, 40 basis points better than the prior-year quarter. Net margin was 4.1%, 230 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.55 billion. On the bottom line, the average EPS estimate is $0.71.
Next year's average estimate for revenue is $6.21 billion. The average EPS estimate is $2.86.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 228 members out of 248 rating the stock outperform, and 20 members rating it underperform. Among 83 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 79 give Omnicare 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 Omnicare is outperform, with an average price target of $38.69.
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