Cephalon Earnings Cheat Sheet: Margin Expansion Driven by Falling Costs, Profit Rises

Lower costs helped S&P 500 (NYSE:SPY) component Cephalon, Inc. (NASDAQ:CEPH) pull in a higher profit in the second quarter. Cephalon, Inc. is an international biopharmaceutical company that develops products to address central nervous system, pain, oncology and inflammatory disease.

Investing Insights: Steve Jobs Prepares to Deliver a New Catalyst for Apple’s Stock >>

Cephalon Earnings Cheat Sheet for the Second Quarter

Results: Net income for Cephalon, Inc. rose to $118.2 million ($1.34 per share) vs. $89.1 million ($1.11 per share) in the same quarter a year earlier. This marks a rise of 32.7% from the year earlier quarter.

Revenue: Rose 1.6% to $738.3 million from the year earlier quarter.

Actual vs. Wall St. Expectations: CEPH reported adjusted net income of $1.86 per share. By that measure, the company fell short of mean estimate of $2.08 per share. It fell short of the average revenue estimate of $764.4 million.

Key Stats:

Revenue has risen the past four quarters. Revenue increased 24.9% to $745.1 million in the first quarter. The figure rose 34% in the fourth quarter of the last fiscal year from the year earlier and climbed 30.5% in the third quarter of the last fiscal year from the year-ago quarter.

The company has now fallen short of estimates in the last two quarters. In the first quarter, it missed expectations by 6 cents with net income of $1.98 versus a mean estimate of net income of $2.04 per share.

The company has now seen net income rise in two straight quarters. In the first quarter, net income rose 90.9% from the year earlier.

Competitors to Watch: Watson Pharmaceuticals, Inc. (NYSE:WPI), Valeant Pharmaceuticals Int (NYSE:VRX), Genzyme Corporation (NASDAQ:GENZ), Johnson & Johnson (NYSE:JNJ), Jazz Pharmaceuticals, Inc. (NASDAQ:JAZZ), ChemGenex Pharmaceuticals Ltd. (CXSPY), Teva Pharmaceutical Industries Ltd (NASDAQ:TEVA), Bristol Myers Squibb Co. (NYSE:BMY), Abbott Laboratories (NYSE:ABT), and Biogen Idec Inc. (NASDAQ:BIIB).

Investing Insights: Steve Jobs Prepares to Deliver a New Catalyst for Apple’s Stock >>

(Source: Xignite Financials)