Lannett Beats on Both Top and Bottom Lines
Feb 7th 2013 10:05PM
Updated Feb 8th 2013 6:45AM
Lannett (AMEX: LCI) reported earnings on Feb. 7. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q2), Lannett beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share increased significantly.
Margins expanded across the board.
Lannett reported revenue of $36.6 million. The two analysts polled by S&P Capital IQ expected to see a top line of $36.1 million on the same basis. GAAP reported sales were 32% higher than the prior-year quarter's $27.7 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 $0.10. The two earnings estimates compiled by S&P Capital IQ predicted $0.09 per share. GAAP EPS of $0.10 for Q2 were 400% higher than the prior-year quarter's $0.02 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 38.0%, 950 basis points better than the prior-year quarter. Operating margin was 12.8%, 1,100 basis points better than the prior-year quarter. Net margin was 7.9%, 570 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $33.3 million. On the bottom line, the average EPS estimate is $0.02.
Next year's average estimate for revenue is $140.9 million. The average EPS estimate is $0.23.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 77 members out of 86 rating the stock outperform, and nine members rating it underperform. Among 18 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 17 give Lannett a green thumbs-up, and one give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Lannett is buy, with an average price target of $6.33.
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The article Lannett Beats on Both Top and Bottom Lines originally appeared on Fool.com.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 of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned. 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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