The 10-second takeaway
For the quarter ended March 31 (Q1), Derma Sciences met expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly. GAAP loss per share expanded.
Gross margins grew, operating margins contracted, net margins shrank.
Derma Sciences tallied revenue of $18.8 million. The three analysts polled by S&P Capital IQ predicted revenue of $19.0 million on the same basis. GAAP reported sales were 23% higher than the prior-year quarter's $15.3 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 -$0.38. The three earnings estimates compiled by S&P Capital IQ forecast -$0.37 per share. GAAP EPS were -$0.38 for Q1 versus -$0.24 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 35.7%, 380 basis points better than the prior-year quarter. Operating margin was -32.7%, much worse than the prior-year quarter. Net margin was -33.2%, much worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $20.1 million. On the bottom line, the average EPS estimate is -$0.41.
Next year's average estimate for revenue is $82.8 million. The average EPS estimate is -$1.59.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 10 members out of 21 rating the stock outperform, and 11 members rating it underperform. Among seven CAPS All-Star picks (recommendations by the highest-ranked CAPS members), give Derma Sciences a green thumbs-up, and seven give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Derma Sciences is buy, with an average price target of $16.88.
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