DepoMed (Nasdaq: DEPO) reported earnings on Nov. 5. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Sep. 30 (Q3), DepoMed beat expectations on revenues and exceeded expectations on earnings per share.

Compared to the prior-year quarter, revenue increased significantly and GAAP loss per share contracted.

Margins increased across the board.

Revenue details
DepoMed logged revenue of $33.3 million. The four analysts polled by S&P Capital IQ wanted to see revenue of $28.1 million on the same basis. GAAP reported sales were much higher than the prior-year quarter's $16.5 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 -$0.03. The three earnings estimates compiled by S&P Capital IQ forecast -$0.11 per share. GAAP EPS were -$0.03 for Q3 versus -$0.15 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 94.7%, 170 basis points better than the prior-year quarter. Operating margin was -4.6%, 5,170 basis points better than the prior-year quarter. Net margin was -4.5%, 4,740 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $25.6 million. On the bottom line, the average EPS estimate is -$0.12.

Next year's average estimate for revenue is $84.7 million. The average EPS estimate is -$0.67.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 231 members out of 246 rating the stock outperform, and 15 members rating it underperform. Among 49 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 46 give DepoMed a green thumbs-up, and three give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on DepoMed is buy, with an average price target of $9.38.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.