ISTA Pharmaceuticals Misses on Revenues but Beats on EPS

Before you go, we thought you'd like these...
Before you go close icon

ISTA Pharmaceuticals (NAS: ISTA) reported earnings on Feb. 23. Here are the numbers you need to know.

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

Compared with the prior-year quarter, revenue contracted and GAAP loss per share grew.

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

Revenue details
ISTA Pharmaceuticals tallied revenue of $45.1 million. The four analysts polled by S&P Capital IQ foresaw a top line of $46.6 million on the same basis. GAAP reported sales were 12% lower than the prior-year quarter's $51.1 million.

anImage

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 $0.25. The four earnings estimates compiled by S&P Capital IQ predicted $0.21 per share on the same basis. GAAP EPS were -$0.38 for Q4 compared to -$0.25 per share for the prior-year quarter.

anImage

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 76.3%, 60 basis points better than the prior-year quarter. Operating margin was 22.3%, 610 basis points better than the prior-year quarter. Net margin was -35.3%, 1,880 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $41.8 million. On the bottom line, the average EPS estimate is $0.04.

Next year's average estimate for revenue is $193.4 million. The average EPS estimate is $0.31.

Investor sentiment
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 94 members out of 109 rating the stock outperform, and 16 members rating it underperform. Among 25 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 19 give ISTA Pharmaceuticals a green thumbs-up, and six give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on ISTA Pharmaceuticals is hold, with an average price target of $10.00.

Over the decades, small-cap stocks like ISTA Pharmaceuticals have provided market-beating returns, provided they're value-priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Get instant access to this free report.

At the time this article was published

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners