The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Cadence Pharmaceuticals beat slightly on revenues and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly. Non-GAAP loss per share shrank. GAAP loss per share dropped.
Margins grew across the board.
Cadence Pharmaceuticals booked revenue of $17.2 million. The five analysts polled by S&P Capital IQ expected a top line of $16.9 million on the same basis. GAAP reported sales were much higher than the prior-year quarter's $5.9 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 -$0.15. The six earnings estimates compiled by S&P Capital IQ predicted -$0.17 per share. Non-GAAP EPS were -$0.15 for Q4 versus -$0.28 per share for the prior-year quarter. GAAP EPS were -$0.25 for Q4 compared to -$0.37 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 58.2%, much better than the prior-year quarter. Operating margin was -73.4%, much better than the prior-year quarter. Net margin was -124.7%, much better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $19.7 million. On the bottom line, the average EPS estimate is -$0.11.
Next year's average estimate for revenue is $100.5 million. The average EPS estimate is -$0.42.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 68 members out of 107 rating the stock outperform, and 39 members rating it underperform. Among 33 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 21 give Cadence Pharmaceuticals a green thumbs-up, and 12 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Cadence Pharmaceuticals is outperform, with an average price target of $5.46.
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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.
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