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DepoMed, in the Spotlight Soon

By Seth Jayson – Updated Apr 10, 2017 at 7:26AM

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Checking expectations

DepoMed (Nasdaq: DEPO) is expected to report Q1 earnings on May 8. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict DepoMed's revenues will grow 67.9% and EPS will remain in the red.

The average estimate for revenue is $28.3 million. On the bottom line, the average EPS estimate is -$0.06.

Revenue details
Last quarter, DepoMed chalked up revenue of $26.6 million. GAAP reported sales were much higher than the prior-year quarter's $12.1 million.

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

EPS details
Last quarter, EPS came in at -$0.07. GAAP EPS were -$0.07 for Q4 against -$0.25 per share for the prior-year quarter.

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

Recent performance
For the preceding quarter, gross margin was 88.7%, 620 basis points worse than the prior-year quarter. Operating margin was -17.3%, much better than the prior-year quarter. Net margin was -13.9%, much better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $128.9 million. The average EPS estimate is -$0.02.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 226 members out of 243 rating the stock outperform, and 17 members rating it underperform. Among 48 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 45 give DepoMed a green thumbs-up, and three give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on DepoMed is buy, with an average price target of $9.33.

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. 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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