Depomed Inc (NASDAQ: DEPO) is having an incredibly strong day in the market today after announcing its financial results for the first quarter. As you could imagine, the results proved to be positive, leading to excitement among investors and sending the stock on a tear for the top. Today, we’ll talk about:
- What we saw from the financial results;
- what we’re seeing from the stock;
- and what we’ll be watching for ahead
DEPO Heads Skyward On Financial Results
As mentioned above, Depomed is having a great day in the market today after the company reported its financial results for the first quarter. Her’es what we saw from the report:
- Net Income – In terms of net income, the company reported $33.8 million. That works out to $0.48 per share. This proved to be incredibly positive news for DEPO as the company produced a loss in the same quarter one year ago.
- Earnings Per share – In terms of earnings per share, the company did overwhelmingly well yet again. During the quarter, the company reported earnings per share, adjusted for non-recurring gains, in the amount of $0.28. Analysts were expecting that the company would generate earnings in the amount of $0.14, just half of what the company actually reported.
- Revenue – Revenue also proved to be a strong point. During the quarter, analysts expected that the company would generate revenue in the amount of $62.5 million. However, the company more than doubled that figure, reporting revenue in the amount of $128.4 million.
In a statement, Arthur Higgins, President and CEO at DEPO, had the following to offer:
I’m pleased with our results in the first quarter as well as the excellent progress we’re making toward repositioning our company, diversifying our commercial portfolio, and attracting new senior management talent to our team… Our continued progress underscores the strong commitment we have to our three-pillar strategy of Maintain, Grow and Build, with the overall goal of improving profitability in 2018 and beyond.
What We’re Seeing From The Stock
Earnings season is one of my favorite seasons of the year, and for good reason. It’s during this season that we see some of the largest opportunities in the market. With the overwhelmingly positive financial report from Depomed, it only makes sense that we’re seeing strong gains in the value of the stock today. As is almost always the case, our partners at Trade Ideas were the first to alert us to the gains. At the moment (11:39), DEPO is trading at $7.22 per share after a gain of $1.26 per share or 21.14% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on DEPO. In particular, we’re interested in following the story surrounding the company’s ongoing growth as it proved that growth is indeed taking place with its financial results. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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