The 10-second takeaway
For the quarter ended Dec. 31 (Q4), PharMerica met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share dropped significantly.
Gross margins grew, operating margins shrank, net margins shrank.
PharMerica notched revenue of $433.2 million. The eight analysts polled by S&P Capital IQ wanted to see sales of $432.4 million on the same basis. GAAP reported sales were 13% lower than the prior-year quarter's $495.6 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 $0.33. The nine earnings estimates compiled by S&P Capital IQ predicted $0.29 per share. GAAP EPS of $0.12 for Q4 were 54% lower than the prior-year quarter's $0.26 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 17.5%, 280 basis points better than the prior-year quarter. Operating margin was 3.4%, 60 basis points worse than the prior-year quarter. Net margin was 0.9%, 70 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $442.6 million. On the bottom line, the average EPS estimate is $0.33.
Next year's average estimate for revenue is $1.74 billion. The average EPS estimate is $1.32.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 121 members out of 126 rating the stock outperform, and five members rating it underperform. Among 22 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 21 give PharMerica a green thumbs-up, and one give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on PharMerica is outperform, with an average price target of $15.50.
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