Akorn Beats on Both Top and Bottom Lines
Akorn (NAS: AKRX) reported earnings on May 8. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), Akorn beat expectations on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share expanded significantly.
Gross margin grew, operating margin grew, and net margin shrank.
Akorn logged revenue of $51.7 million. The four analysts polled by S&P Capital IQ looked for sales of $48.9 million on the same basis. GAAP reported sales were much higher than the prior-year quarter's $25.4 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 $0.08. The three earnings estimates compiled by S&P Capital IQ predicted $0.07 per share. GAAP EPS of $0.08 for Q1 were 33% higher than the prior-year quarter's $0.06 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 59.8%, 380 basis points better than the prior-year quarter. Operating margin was 30.9%, 850 basis points better than the prior-year quarter. Net margin was 16.4%, 640 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $59.7 million. On the bottom line, the average EPS estimate is $0.09.
Next year's average estimate for revenue is $256.1 million. The average EPS estimate is $0.44.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 166 members out of 179 rating the stock outperform, and 13 members rating it underperform. Among 44 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 37 give Akorn a green thumbs-up, and seven give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Akorn is buy, with an average price target of $14.50.
Over the decades, small-cap stocks like Akorn have provided 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: Two Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.
- Add Akorn 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.