Hi-Tech Pharmacal Earnings Preview


Hi-Tech Pharmacal (NAS: HITK) will try to beat its earnings estimates for the fifth consecutive quarter. The company will unveil its latest earnings on Thursday, March 8. Hi-Tech Pharmacal is a specialty manufacturer and marketer of prescription, over-the-counter, and nutritional products.

What analysts say:

  • Buy, sell, or hold?: Half of analysts think investors should stand pat on Hi-Tech Pharmacal while the remaining half are split between buy and sell. Analysts don't like Hi-Tech Pharmacal as much as competitor Par Pharmaceutical Companies overall. Seven out of nine analysts rate Par Pharmaceutical Companies a buy compared to one of four for Hi-Tech Pharmacal. While analysts still rate the stock a hold, they are a little more optimistic about it compared to three months ago.

  • Revenue forecasts: On average, analysts predict $55.7 million in revenue this quarter. That would represent a rise of 11.4% from the year-ago quarter.

  • Wall Street earnings expectations: The average analyst estimate is earnings of $0.89 per share. Estimates range from $0.76 to $0.98.

What our community says:
CAPS All-Stars are solidly supporting the stock, with 94.7% granting it an "outperform" rating. Most of the community agrees with the All-Stars, with 92.8% assigning it a rating of "outperform." Even with a robust four out of five stars, Hi-Tech Pharmacal's CAPS rating falls a little short of the community's upbeat outlook.

Hi-Tech Pharmacal's profit has risen year-over-year by an average of 52.6% over the past five quarters. The company boosted its gross margin by three percentage points in the last quarter. Revenue rose 26.7% while cost of sales rose 18% to $23.5 million from a year earlier.

Now let's get some insight into how efficient management is at running the business. Margins are a representation of how efficiently a company captures portions of sales dollars. Hi-Tech Pharmacal's operating margins have been increasing year-over-year for the last four quarters. Operating margins reflect the total sales revenue that the company retains after costs. Here is how Hi-Tech Pharmacal has been doing for the last four quarters:






Gross Margin





Operating Margin





Net Margin





One final thing: If you want to keep tabs on Hi-Tech Pharmacal movements, and for more analysis on the company, make sure you add it to your Watchlist.

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.

Earnings estimates provided by Zacks.

At the time thisarticle was published

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.