Medicines Beats on Both Top and Bottom Lines

Medicines (Nasdaq: MDCO  ) reported earnings on May 10. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Medicines beat expectations on revenues and beat expectations on earnings per share.

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

Gross margins expanded, operating margins shrank, net margins shrank.

Revenue details
Medicines recorded revenue of $126.6 million. The four analysts polled by S&P Capital IQ predicted sales of $123.4 million on the same basis. GAAP reported sales were 13% higher than the prior-year quarter's $112.1 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 $0.27. The three earnings estimates compiled by S&P Capital IQ anticipated $0.18 per share. GAAP EPS of $0.14 for Q1 were 69% lower than the prior-year quarter's $0.45 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 69.5%, 120 basis points better than the prior-year quarter. Operating margin was 9.5%, 370 basis points worse than the prior-year quarter. Net margin was 6.0%, 1,560 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $134.5 million. On the bottom line, the average EPS estimate is $0.25.

Next year's average estimate for revenue is $545.6 million. The average EPS estimate is $1.45.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 119 members out of 132 rating the stock outperform, and 13 members rating it underperform. Among 27 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 26 give Medicines a green thumbs-up, and one gives it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Medicines is outperform, with an average price target of $24.20.

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