Biogen Idec Outruns Estimates Again

Biogen Idec (NAS: BIIB) reported earnings on Jan. 31. Here are the numbers you need to know.

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

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

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

Revenue details
Biogen Idec logged revenue of $1.33 billion. The 17 analysts polled by S&P Capital IQ predicted a top line of $1.30 billion. Sales were 8.8% higher than the prior-year quarter's $1.22 billion.


Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
Non-GAAP EPS came in at $1.51. The 22 earnings estimates compiled by S&P Capital IQ averaged $1.49 per share on the same basis. GAAP EPS of $1.22 for Q4 were 23% higher than the prior-year quarter's $0.99 per share.


Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 89.5%, 230 basis points worse than the prior-year quarter. Operating margin was 33.2%, 210 basis points worse than the prior-year quarter. Net margin was 22.6%, 290 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $1.30 billion. On the bottom line, the average EPS estimate is $1.51.

Next year's average estimate for revenue is $5.29 billion. The average EPS estimate is $6.36.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 639 members out of 705 rating the stock outperform, and 66 members rating it underperform. Among 218 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 207 give Biogen Idec a green thumbs-up, and 11 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Biogen Idec is outperform, with an average price target of $123.72.

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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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