Epocrates Beats on Both Top and Bottom Lines
Epocrates (NAS: EPOC) reported earnings on May 1. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), Epocrates beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted and GAAP loss per share dropped.
Gross margins shrank, operating margins grew, net margins dropped.
Epocrates reported revenue of $27.5 million. The five analysts polled by S&P Capital IQ looked for revenue of $26.6 million on the same basis. GAAP reported sales were 5.6% lower than the prior-year quarter's $29.2 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.09. The five earnings estimates compiled by S&P Capital IQ forecast $0.01 per share. GAAP EPS were -$0.06 for Q1 against -$0.08 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 62.6%, 520 basis points worse than the prior-year quarter. Operating margin was 4.6%, 850 basis points better than the prior-year quarter. Net margin was -5.2%, 130 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $26.0 million. On the bottom line, the average EPS estimate is -$0.01.
Next year's average estimate for revenue is $108.8 million. The average EPS estimate is $0.17.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 34 members out of 39 rating the stock outperform, and five members rating it underperform. Among 10 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), eight give Epocrates a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Epocrates is hold, with an average price target of $12.00.
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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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