Akorn Increases Sales but Misses Estimates on Earnings

Akorn (Nasdaq: AKRX  ) reported earnings on Feb. 26. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Akorn beat expectations on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue grew significantly. GAAP earnings per share grew significantly.

Gross margins dropped, operating margins increased, net margins dropped.

Revenue details
Akorn booked revenue of $71.5 million. The nine analysts polled by S&P Capital IQ expected to see revenue of $69.4 million on the same basis. GAAP reported sales were 68% higher than the prior-year quarter's $42.6 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.08. The six earnings estimates compiled by S&P Capital IQ averaged $0.10 per share. GAAP EPS of $0.08 for Q4 were 60% higher than the prior-year quarter's $0.05 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 58.7%, 420 basis points worse than the prior-year quarter. Operating margin was 27.6%, 60 basis points better than the prior-year quarter. Net margin was 12.3%, 110 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $75.9 million. On the bottom line, the average EPS estimate is $0.11.

Next year's average estimate for revenue is $334.8 million. The average EPS estimate is $0.51.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 160 members out of 172 rating the stock outperform, and 12 members rating it underperform. Among 39 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 31 give Akorn a green thumbs-up, and eight give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Akorn is outperform, with an average price target of $16.14.

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