The 10-second takeaway
For the quarter ended March 31 (Q1), Akorn met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly. GAAP earnings per share grew significantly.
Gross margins shrank, operating margins contracted, net margins grew.
Akorn booked revenue of $73.9 million. The seven analysts polled by S&P Capital IQ expected net sales of $74.3 million on the same basis. GAAP reported sales were 43% higher than the prior-year quarter's $51.7 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 $0.10. The five earnings estimates compiled by S&P Capital IQ anticipated $0.10 per share. GAAP EPS of $0.10 for Q1 were 233% higher than the prior-year quarter's $0.03 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 53.0%, 680 basis points worse than the prior-year quarter. Operating margin was 25.9%, 530 basis points worse than the prior-year quarter. Net margin was 14.7%, 870 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $81.5 million. On the bottom line, the average EPS estimate is $0.12.
Next year's average estimate for revenue is $333.6 million. The average EPS estimate is $0.52.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 158 members out of 170 rating the stock outperform, and 12 members rating it underperform. Among 35 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 29 give Akorn a green thumbs-up, and six give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Akorn is outperform, with an average price target of $16.75.
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