The 10-second takeaway
For the quarter ended March 31 (Q1), Actavis missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly. Non-GAAP earnings per share grew significantly. GAAP earnings per share shrank to a loss.
Gross margins grew, operating margins dropped, net margins contracted.
Actavis chalked up revenue of $1.90 billion. The 17 analysts polled by S&P Capital IQ anticipated revenue of $1.97 billion on the same basis. GAAP reported sales were 24% higher than the prior-year quarter's $1.52 billion.
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 $1.99. The 21 earnings estimates compiled by S&P Capital IQ averaged $1.88 per share. Non-GAAP EPS of $1.99 for Q1 were 21% higher than the prior-year quarter's $1.64 per share. GAAP EPS were -$0.79 for Q1 versus $0.43 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 42.7%, 200 basis points better than the prior-year quarter. Operating margin was 5.6%, 240 basis points worse than the prior-year quarter. Net margin was -5.4%, 900 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.99 billion. On the bottom line, the average EPS estimate is $2.00.
Next year's average estimate for revenue is $8.09 billion. The average EPS estimate is $8.26.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 217 members out of 235 rating the stock outperform, and 18 members rating it underperform. Among 84 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 80 give Actavis a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Actavis is outperform, with an average price target of $97.76.
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