Salix Pharmaceuticals Earnings: Here’s Why Investors are Excited Now

Salix Pharmaceuticals Ltd. (NASDAQ:SLXP) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 0.30%.

Markets are at 5-year highs! Discover the best stocks to own. Click here for our fresh Feature Stock Pick now!

Salix Pharmaceuticals Ltd. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 5.97% to $0.63 in the quarter versus EPS of $0.67 in the year-earlier quarter.

Revenue: Rose 12.2% to $192 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Salix Pharmaceuticals Ltd. reported adjusted EPS income of $0.63 per share. By that measure, the company missed the mean analyst estimate of $0.68. It missed the average revenue estimate of $205.94 million.

Quoting Management: Adam Derbyshire, Executive Vice President and Chief Financial Officer, stated, “XIFAXAN 550 mg continued to perform well during the first quarter of 2013. During the quarter our XIFAXAN 550 mg prescription business demonstrated impressive growth of 26% compared to the first quarter of 2012. APRISO also demonstrated strong prescription year-over-year growth of 11% for the first quarter of 2013 compared to the first quarter of 2012. RELISTOR prescriptions increased 52% year-over-year for the first quarter of 2013 compared to the first quarter of 2012.”

Key Stats (on next page)…

Revenue decreased 3.11% from $198.17 million in the previous quarter. EPS decreased 22.22% from $0.81 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.79 and has not changed. For the current year, the average estimate has moved down from a profit of $3.38 to a profit of $3.36 over the last ninety days.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

More Articles About:   , , ,  

More from The Cheat Sheet