Omnicare Misses Where It Counts

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Omnicare (NYS: OCR) reported earnings on April 26. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Omnicare beat expectations on revenues and missed estimates on earnings per share.

Compared with the prior-year quarter, revenue increased and GAAP earnings per share expanded significantly.


Gross margins expanded, operating margins contracted, net margins grew.

Revenue details
Omnicare notched revenue of $1.59 billion. The seven analysts polled by S&P Capital IQ predicted net sales of $1.53 billion on the same basis. GAAP reported sales were 4.4% higher than the prior-year quarter's $1.53 billion.

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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
EPS came in at $0.63. The eight earnings estimates compiled by S&P Capital IQ anticipated $0.68 per share. GAAP EPS of $0.48 for Q1 were 92% higher than the prior-year quarter's $0.25 per share.

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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 23.1%, 110 basis points better than the prior-year quarter. Operating margin was 7.8%, 10 basis points worse than the prior-year quarter. Net margin was 3.5%, 160 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $1.55 billion. On the bottom line, the average EPS estimate is $0.74.

Next year's average estimate for revenue is $6.21 billion. The average EPS estimate is $2.94.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 223 members out of 242 rating the stock outperform, and 19 members rating it underperform. Among 84 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 80 give Omnicare a green thumbs-up, and four give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Omnicare is outperform, with an average price target of $37.28.

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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. He is the 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 don't 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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