Fool Checkup: DepoMed Earnings

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DepoMed (NAS: DEPO) reported earnings on Feb. 20. Here are the numbers you need to know.

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

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


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

Revenue details
DepoMed booked revenue of $26.6 million. The four analysts polled by S&P Capital IQ foresaw net sales of $26.6 million on the same basis. GAAP reported sales were much higher than the prior-year quarter's $12.1 million.

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 -$0.07. The four earnings estimates compiled by S&P Capital IQ predicted -$0.11 per share. GAAP EPS were -$0.07 for Q4 against -$0.25 per share for the prior-year quarter.

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 91.3%, 360 basis points worse than the prior-year quarter. Operating margin was -14.6%, 9,100 basis points better than the prior-year quarter. Net margin was -13.9%, 10,020 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $28.1 million. On the bottom line, the average EPS estimate is -$0.09.

Next year's average estimate for revenue is $138.9 million. The average EPS estimate is $0.04.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 231 members out of 251 rating the stock outperform, and 20 members rating it underperform. Among 56 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 50 give DepoMed 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 DepoMed is buy, with an average price target of $9.33.

The article Fool Checkup: DepoMed Earnings originally appeared on Fool.com.

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. TMFDisclosureHere

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