The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Medicines beat expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. Non-GAAP earnings per share expanded significantly. GAAP earnings per share grew.
Gross margins increased, operating margins expanded, net margins contracted.
Medicines booked revenue of $159.5 million. The five analysts polled by S&P Capital IQ wanted to see a top line of $145.1 million on the same basis. GAAP reported sales were 21% higher than the prior-year quarter's $132.2 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 $0.78. The three earnings estimates compiled by S&P Capital IQ predicted $0.51 per share. Non-GAAP EPS of $0.78 for Q4 were 117% higher than the prior-year quarter's $0.36 per share. GAAP EPS of $0.38 for Q4 were 8.6% higher than the prior-year quarter's $0.35 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 67.3%, 60 basis points better than the prior-year quarter. Operating margin was 22.8%, 760 basis points better than the prior-year quarter. Net margin was 13.0%, 180 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $157.6 million. On the bottom line, the average EPS estimate is $0.43.
Next year's average estimate for revenue is $655.1 million. The average EPS estimate is $1.94.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 139 members out of 154 rating the stock outperform, and 15 members rating it underperform. Among 36 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 32 give Medicines 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 Medicines is outperform, with an average price target of $31.00.
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