Cambrex Increases Sales but Misses Estimates on Earnings
Cambrex (NYS: CBM) filed its 10-K on Feb. 7. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Cambrex beat expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share contracted significantly.
Margins contracted across the board.
Cambrex reported revenue of $67.5 million. The two analysts polled by S&P Capital IQ predicted a top line of $65.2 million on the same basis. GAAP reported sales were 4.2% higher than the prior-year quarter's $65.0 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.10. The earnings estimates compiled by S&P Capital IQ predicted $0.12 per share on the same basis. GAAP EPS of $0.02 for Q4 were 88% lower than the prior-year quarter's $0.16 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 29.5%, 190 basis points worse than the prior-year quarter. Operating margin was 8.9%, 460 basis points worse than the prior-year quarter. Net margin was 1.1%, 600 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $66.0 million. On the bottom line, the average EPS estimate is $0.14.
Next year's average estimate for revenue is $264.4 million. The average EPS estimate is $0.56.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 58 members out of 72 rating the stock outperform, and 14 members rating it underperform. Among 14 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 12 give Cambrex a green thumbs-up, and two give it a red thumbs-down.
Over the decades, small-cap stocks like Cambrex have produced 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: 2 Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.
- Add Cambrex to My Watchlist.
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.