The 10-second takeaway
For the quarter ended March 31 (Q1), Santarus beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. GAAP earnings per share expanded significantly.
Margins expanded across the board.
Santarus reported revenue of $79.4 million. The five analysts polled by S&P Capital IQ looked for a top line of $74.8 million on the same basis. GAAP reported sales were 73% higher than the prior-year quarter's $45.9 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 $0.25. The five earnings estimates compiled by S&P Capital IQ anticipated $0.14 per share. GAAP EPS of $0.25 for Q1 were much higher than the prior-year quarter's $0.01 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 72.0%, much better than the prior-year quarter. Operating margin was 25.0%, much better than the prior-year quarter. Net margin was 23.6%, much better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $83.4 million. On the bottom line, the average EPS estimate is $0.15.
Next year's average estimate for revenue is $342.7 million. The average EPS estimate is $0.79.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 149 members out of 163 rating the stock outperform, and 14 members rating it underperform. Among 37 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 33 give Santarus 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 Santarus is buy, with an average price target of $16.80.
- Add Santarus to My Watchlist.
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. Try any of our Foolish newsletter services free for 30 days. 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.