The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Questcor Pharmaceuticals beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly. GAAP earnings per share expanded significantly.
Gross margins dropped, operating margins grew, net margins dropped.
Questcor Pharmaceuticals logged revenue of $160.5 million. The eight analysts polled by S&P Capital IQ expected revenue of $143.0 million on the same basis. GAAP reported sales were much higher than the prior-year quarter's $75.5 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 $1.03. The six earnings estimates compiled by S&P Capital IQ anticipated $0.90 per share. GAAP EPS of $1.03 for Q4 were 115% higher than the prior-year quarter's $0.48 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 94.3%, 40 basis points worse than the prior-year quarter. Operating margin was 59.0%, 240 basis points better than the prior-year quarter. Net margin was 38.6%, 330 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $147.6 million. On the bottom line, the average EPS estimate is $0.84.
Next year's average estimate for revenue is $621.7 million. The average EPS estimate is $3.68.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 467 members out of 530 rating the stock outperform, and 63 members rating it underperform. Among 134 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 105 give Questcor Pharmaceuticals a green thumbs-up, and 29 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Questcor Pharmaceuticals is outperform, with an average price target of $41.86.
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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.