Optimer Pharmaceuticals Goes Red

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

Optimer Pharmaceuticals (NAS: OPTR) reported earnings on May 10. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Optimer Pharmaceuticals whiffed on revenues and exceeded expectations on earnings per share.

Compared to the prior-year quarter, revenue shrank significantly and GAAP earnings per share shrank to a loss.


Gross margins increased, operating margins dropped, and et margins contracted.

Revenue details
Optimer Pharmaceuticals reported revenue of $14.4 million. The seven analysts polled by S&P Capital IQ predicted a top line of $30.0 million on the same basis. GAAP reported sales were 79% lower than the prior-year quarter's $69.3 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
EPS came in at -$0.23. The seven earnings estimates compiled by S&P Capital IQ averaged -$0.40 per share. GAAP EPS were -$0.23 for Q1 compared to $1.04 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 84.1%, 250 basis points better than the prior-year quarter. Operating margin was -240.4%, 30,510 basis points worse than the prior-year quarter. Net margin was -75.9%, 14,100 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $28.4 million. On the bottom line, the average EPS estimate is -$0.35.

Next year's average estimate for revenue is $107.6 million. The average EPS estimate is -$1.14.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 111 members out of 147 rating the stock outperform, and 36 members rating it underperform. Among 49 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 35 give Optimer Pharmaceuticals a green thumbs-up, and 14 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Optimer Pharmaceuticals is buy, with an average price target of $19.78.

The drug and health-care investing landscape is littered with also-rans and a few major winners. Is Optimer Pharmaceuticals the right stock for you? Read "Discover the Next Rule-Breaking Multibagger" to learn about a company Fool co-founder David Gardner believes will be a phenomenal success over the next few years. Click here for instant access to this free report.

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.

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