The 10-second takeaway
For the quarter ended March 31 (Q1), PharMerica beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped. Non-GAAP earnings per share grew significantly. GAAP earnings per share grew significantly.
Margins grew across the board.
PharMerica booked revenue of $439.8 million. The seven analysts polled by S&P Capital IQ expected a top line of $435.1 million on the same basis. GAAP reported sales were 12% lower than the prior-year quarter's $498.9 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 $0.46. The eight earnings estimates compiled by S&P Capital IQ anticipated $0.34 per share. Non-GAAP EPS of $0.46 for Q1 were 53% higher than the prior-year quarter's $0.30 per share. GAAP EPS of $0.35 for Q1 were 84% higher than the prior-year quarter's $0.19 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 19.2%, 480 basis points better than the prior-year quarter. Operating margin was 5.3%, 180 basis points better than the prior-year quarter. Net margin was 2.4%, 130 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $415.8 million. On the bottom line, the average EPS estimate is $0.34.
Next year's average estimate for revenue is $1.66 billion. The average EPS estimate is $1.41.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 121 members out of 127 rating the stock outperform, and six members rating it underperform. Among 19 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 18 give PharMerica a green thumbs-up, and one give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on PharMerica is outperform, with an average price target of $16.79.
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