Alere Outruns Estimates Again

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Alere (NYS: ALR) reported earnings Feb. 8. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Alere beat expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue grew and GAAP loss per share dropped.

Gross margins were steady, operating margins improved, net margins increased.

Revenue details
Alere recorded revenue of $651.1 million. The 12 analysts polled by S&P Capital IQ looked for sales of $631.6 million. GAAP sales were 13% higher than the prior-year quarter's $578.5 million.

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

EPS details
Non-GAAP EPS came in at $0.74. The 13 earnings estimates compiled by S&P Capital IQ anticipated $0.71 per share on the same basis. GAAP EPS were -$4.62 for Q4 compared to -$12.24 per share for the prior-year quarter.

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

Margin details
For the quarter, gross margin was 52.4%, about the same as the prior-year quarter. Operating margin was 6.0%, 970 basis points better than the prior-year quarter. Net margin was -55.3%, 12,330 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $648.6 million. On the bottom line, the average EPS estimate is $0.66.

Next year's average estimate for revenue is $2.62 billion. The average EPS estimate is $2.69.

Investor sentiment
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Alere is outperform, with an average price target of $31.20.

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At the time this article was published 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 ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. 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.

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