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Derma Sciences Beats Up on Analysts Yet Again

By Seth Jayson - Updated Apr 10, 2017 at 1:58PM

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Just the facts, Fool.

Derma Sciences (Nasdaq: DSCI) filed its 10-K on March 28. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Derma Sciences met expectations on revenues and exceeded expectations on earnings per share.

Compared to the prior-year quarter, revenue increased significantly. Non-GAAP loss per share grew. GAAP loss per share grew.

Gross margins grew, operating margins dropped, net margins shrank.

Revenue details
Derma Sciences booked revenue of $20.1 million. The four analysts polled by S&P Capital IQ expected revenue of $20.1 million on the same basis. GAAP reported sales were 22% higher than the prior-year quarter's $16.5 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at -$0.30. The four earnings estimates compiled by S&P Capital IQ averaged -$0.31 per share. Non-GAAP EPS were -$0.30 for Q4 compared to -$0.23 per share for the prior-year quarter. GAAP EPS were -$0.27 for Q4 against -$0.23 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 35.6%, 770 basis points better than the prior-year quarter. Operating margin was -20.6%, 670 basis points worse than the prior-year quarter. Net margin was -18.3%, 350 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $19.1 million. On the bottom line, the average EPS estimate is -$0.36.

Next year's average estimate for revenue is $83.1 million. The average EPS estimate is -$1.50.

Investor sentiment
The stock has a one-star rating (out of five) at Motley Fool CAPS, with eight members out of 21 rating the stock outperform, and 13 members rating it underperform. Among nine CAPS All-Star picks (recommendations by the highest-ranked CAPS members), give Derma Sciences a green thumbs-up, and nine give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Derma Sciences is buy, with an average price target of $16.88.

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