OraSure Technologies Increases Sales but Misses Estimates on Earnings

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OraSure Technologies (NAS: OSUR) reported earnings on Feb. 8. Here are the numbers you need to know.

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

Compared to the prior-year quarter, revenue increased and GAAP earnings per share increased to zero.

Gross margins dropped, operating margins expanded, net margins increased.

Revenue details
OraSure Technologies logged revenue of $21.7 million. The five analysts polled by S&P Capital IQ wanted to see a top line of $19.3 million. GAAP sales were 26% higher than the prior-year quarter's $18.8 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 -$0.08. The five earnings estimates compiled by S&P Capital IQ averaged -$0.07 per share on the same basis. GAAP EPS contracted to zero from the prior-year quarter's -$0.03.

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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 61.6%, 200 basis points worse than the prior-year quarter. Operating margin was -1.2%, 380 basis points better than the prior-year quarter. Net margin was 0.5%, 590 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $23.1 million. On the bottom line, the average EPS estimate is -$0.07.

Next year's average estimate for revenue is $81.4 million. The average EPS estimate is -$0.26.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 190 members out of 213 rating the stock outperform, and 23 members rating it underperform. Among 61 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 51 give OraSure Technologies a green thumbs-up, and 10 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on OraSure Technologies is buy, with an average price target of $11.50.

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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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