The 10-second takeaway
For the quarter ended Dec. 31 (Q1), Avanir Pharmaceuticals met expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP loss per share dropped.
Gross margins contracted, operating margins expanded, net margins grew.
Avanir Pharmaceuticals logged revenue of $16.5 million. The five analysts polled by S&P Capital IQ foresaw net sales of $16.4 million on the same basis. GAAP reported sales were much higher than the prior-year quarter's $7.2 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 -$0.09. The four earnings estimates compiled by S&P Capital IQ predicted -$0.08 per share. GAAP EPS were -$0.09 for Q1 against -$0.12 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 94.9%, 80 basis points worse than the prior-year quarter. Operating margin was -66.8%, 15,600 basis points better than the prior-year quarter. Net margin was -73.1%, 14,950 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $18.4 million. On the bottom line, the average EPS estimate is -$0.07.
Next year's average estimate for revenue is $80.2 million. The average EPS estimate is -$0.17.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 187 members out of 248 rating the stock outperform, and 61 members rating it underperform. Among 56 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 40 give Avanir Pharmaceuticals a green thumbs-up, and 16 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 $5.50.
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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 position in any of the stocks mentioned. 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.