ISTA Pharmaceuticals Posts a Surprise Profit
ISTA Pharmaceuticals (NAS: ISTA) reported earnings on May 3. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), ISTA Pharmaceuticals whiffed on revenues and beat expectations on earnings per share.
Compared with the prior-year quarter, revenue shrank and GAAP loss per share dropped. The non-GAAP profit was a surprise, as analysts had predicted a loss.
Margins improved across the board.
ISTA Pharmaceuticals booked revenue of $34.0 million. The four analysts polled by S&P Capital IQ expected revenue of $38.8 million on the same basis. GAAP reported sales were 7.4% lower than the prior-year quarter's $36.7 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 $0.06. The four earnings estimates compiled by S&P Capital IQ predicted -$0.11 per share. GAAP EPS were -$0.43 for Q1 against -$2.49 per share for the prior-year quarter.
For the quarter, gross margin was 106.7%, 3,180 basis points better than the prior-year quarter. Operating margin was -4.7%, 2,190 basis points better than the prior-year quarter. Net margin was -52.3%, 17,670 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $48.7 million. On the bottom line, the average EPS estimate is $0.03.
Next year's average estimate for revenue is $189.8 million. The average EPS estimate is $0.50.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 95 members out of 108 rating the stock outperform, and 14 members rating it underperform. Among 20 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 17 give ISTA Pharmaceuticals a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on ISTA Pharmaceuticals is hold, with an average price target of $9.05.
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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. He is the 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 don't 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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