Salix Pharmaceuticals (NAS: SLXP) reported earnings on Feb. 28. Here are the numbers you need to know.

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

Compared to the prior-year quarter, revenue increased significantly. Non-GAAP earnings per share dropped significantly. GAAP earnings per share dropped significantly.


Gross margins grew, operating margins dropped, net margins dropped.

Revenue details
Salix Pharmaceuticals booked revenue of $198.2 million. The 17 analysts polled by S&P Capital IQ anticipated a top line of $199.8 million on the same basis. GAAP reported sales were 28% higher than the prior-year quarter's $155.2 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 $0.81. The 16 earnings estimates compiled by S&P Capital IQ forecast $0.78 per share. Non-GAAP EPS of $0.81 for Q4 were 31% lower than the prior-year quarter's $1.18 per share. GAAP EPS of $0.28 for Q4 were 49% lower than the prior-year quarter's $0.55 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 84.5%, 220 basis points better than the prior-year quarter. Operating margin was 24.6%, 860 basis points worse than the prior-year quarter. Net margin was 8.9%, much worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $206.4 million. On the bottom line, the average EPS estimate is $0.68.

Next year's average estimate for revenue is $921.8 million. The average EPS estimate is $3.39.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 130 members out of 153 rating the stock outperform, and 23 members rating it underperform. Among 54 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 48 give Salix Pharmaceuticals a green thumbs-up, and six give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Salix Pharmaceuticals is outperform, with an average price target of $52.15.

The article Salix Pharmaceuticals Beats on EPS But GAAP Results Lag 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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