Impax Laboratories Beats on Both Top and Bottom Lines

Impax Laboratories (Nasdaq: IPXL  ) reported earnings on Feb. 25. Here are the numbers you need to know.

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

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

Margins dropped across the board.

Revenue details
Impax Laboratories logged revenue of $141.1 million. The 13 analysts polled by S&P Capital IQ expected net sales of $126.6 million on the same basis. GAAP reported sales were 11% lower than the prior-year quarter's $158.6 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 $0.30. The 13 earnings estimates compiled by S&P Capital IQ predicted $0.19 per share. Non-GAAP EPS of $0.30 for Q4 were 17% lower than the prior-year quarter's $0.36 per share. GAAP EPS of $0.07 for Q4 were 78% lower than the prior-year quarter's $0.32 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 45.5%, 330 basis points worse than the prior-year quarter. Operating margin was 5.7%, much worse than the prior-year quarter. Net margin was 3.4%, much worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $142.9 million. On the bottom line, the average EPS estimate is $0.22.

Next year's average estimate for revenue is $569.1 million. The average EPS estimate is $0.73.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 167 members out of 180 rating the stock outperform, and 13 members rating it underperform. Among 55 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 52 give Impax Laboratories a green thumbs-up, and three give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Impax Laboratories is outperform, with an average price target of $25.44.

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