Depomed (DEPO) Misses Q2 EPS by 1c, Trims FY Guidance
Depomed (NASDAQ: DEPO) reported Q2 EPS of $0.08, $0.01 worse than the analyst estimate of $0.09. Revenue for the quarter came in at $100 million versus the consensus estimate of $99.42 million.
GUIDANCE:
Depomed sees FY2017 revenue of $395-410 million, versus the consensus of $416.3 million.
The Company is updating its 2017 financial guidance as a result of recent developments, including (a) increased pressure on short-acting and long-acting opioid markets by federal and state governments, managed care and other stakeholders, (b) July shipment and prescription demand trends, (c) increased legal expenses associated with responding to recent government inquiries and subpoenas directed to opioid manufacturers and (d) expenses associated with the increase in the neurology salesforce:
| Updated Guidance | Prior Guidance | |
| Total Revenue (GAAP) | $395 to $410 million | $405-$425 million |
| Total Revenue (Non-GAAP) | $400 to $415 million | $410-$430 million |
| Non-GAAP SG&A Expense | $195 to $201 million | $187-$197 million |
| Non-GAAP R&D Expense | $18 to $23 million | $22-$29 million |
| Non-GAAP Adjusted EBITDA | $107 to $117 million | $120-$130 million |
The decrease in non-GAAP R&D expense is related to lower post-marketing pediatric study expenses. The new Non-GAAP Adjusted EBITDA guidance reflects the reduction in the midpoint of the revenue guidance and the increased expenses.
For earnings history and earnings-related data on Depomed (DEPO) click here.