The 10-second takeaway
For the quarter ended June 30 (Q2), Cadence Pharmaceuticals beat expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. GAAP loss per share dropped.
Margins expanded across the board.
Cadence Pharmaceuticals tallied revenue of $24.7 million. The 10 analysts polled by S&P Capital IQ expected to see sales of $23.8 million on the same basis. GAAP reported sales were much higher than the prior-year quarter's $11.1 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
EPS came in at -$0.14. The seven earnings estimates compiled by S&P Capital IQ averaged -$0.09 per share. GAAP EPS were -$0.14 for Q2 against -$0.25 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
For the quarter, gross margin was 66.4%, much better than the prior-year quarter. Operating margin was -43.7%, much better than the prior-year quarter. Net margin was -48.1%, much better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $26.8 million. On the bottom line, the average EPS estimate is -$0.07.
Next year's average estimate for revenue is $104.0 million. The average EPS estimate is -$0.28.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 70 members out of 110 rating the stock outperform, and 40 members rating it underperform. Among 31 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 19 give Cadence Pharmaceuticals a green thumbs-up, and 12 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Cadence Pharmaceuticals is outperform, with an average price target of $7.34.
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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. 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.