The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Salix Pharmaceuticals met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly. Non-GAAP earnings per share dropped significantly. GAAP earnings per share dropped significantly.
Gross margins grew, operating margins dropped, net margins dropped.
Salix Pharmaceuticals booked revenue of $198.2 million. The 17 analysts polled by S&P Capital IQ anticipated a top line of $199.8 million on the same basis. GAAP reported sales were 28% higher than the prior-year quarter's $155.2 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 $0.81. The 16 earnings estimates compiled by S&P Capital IQ forecast $0.78 per share. Non-GAAP EPS of $0.81 for Q4 were 31% lower than the prior-year quarter's $1.18 per share. GAAP EPS of $0.28 for Q4 were 49% lower than the prior-year quarter's $0.55 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 84.5%, 220 basis points better than the prior-year quarter. Operating margin was 24.6%, 860 basis points worse than the prior-year quarter. Net margin was 8.9%, much worse than the prior-year quarter.
Next quarter's average estimate for revenue is $206.4 million. On the bottom line, the average EPS estimate is $0.68.
Next year's average estimate for revenue is $921.8 million. The average EPS estimate is $3.39.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 130 members out of 153 rating the stock outperform, and 23 members rating it underperform. Among 54 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 48 give Salix Pharmaceuticals a green thumbs-up, and six give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Salix Pharmaceuticals is outperform, with an average price target of $52.15.
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