Depomed Inc (DEPO) Expected to Post Quarterly Sales of $92.77 Million

Wall Street brokerages forecast that Depomed Inc (NASDAQ:DEPO) will post $92.77 million in sales for the current fiscal quarter, Zacks reports. Two analysts have issued estimates for Depomed’s earnings. The lowest sales estimate is $91.95 million and the highest is $93.59 million. Depomed posted sales of $123.91 million in the same quarter last year, which would suggest a negative year-over-year growth rate of 25.1%. The firm is scheduled to report its next quarterly earnings results on Tuesday, February 20th.

According to Zacks, analysts expect that Depomed will report full-year sales of $92.77 million for the current year, with estimates ranging from $378.27 million to $402.90 million. For the next financial year, analysts forecast that the firm will post sales of $371.96 million per share, with estimates ranging from $289.00 million to $423.80 million. Zacks Investment Research’s sales calculations are a mean average based on a survey of research analysts that cover Depomed.

Depomed (NASDAQ:DEPO) last issued its earnings results on Tuesday, November 7th. The specialty pharmaceutical company reported $0.14 earnings per share for the quarter, beating the Zacks’ consensus estimate of $0.12 by $0.02. The business had revenue of $95.40 million during the quarter, compared to analyst estimates of $99.11 million. Depomed had a negative return on equity of 51.07% and a negative net margin of 27.73%. Depomed’s revenue was down 13.7% on a year-over-year basis. During the same period in the previous year, the company posted $0.28 EPS.

A number of brokerages have weighed in on DEPO. Royal Bank of Canada set a $9.00 target price on Depomed and gave the company a “hold” rating in a research report on Thursday, December 7th. Piper Jaffray Companies reaffirmed a “hold” rating and set a $9.00 target price on shares of Depomed in a research report on Thursday, December 7th. BidaskClub lowered Depomed from a “hold” rating to a “sell” rating in a research report on Tuesday, January 23rd. ValuEngine raised Depomed from a “strong sell” rating to a “sell” rating in a research report on Tuesday, December 5th. Finally, Mizuho raised Depomed from a “neutral” rating to a “buy” rating and set a $9.00 target price for the company in a research report on Tuesday, December 5th. Three research analysts have rated the stock with a sell rating, six have assigned a hold rating and three have assigned a buy rating to the company’s stock. The stock presently has an average rating of “Hold” and an average target price of $11.64.

Shares of Depomed (DEPO) opened at $7.81 on Monday. The company has a current ratio of 0.83, a quick ratio of 0.79 and a debt-to-equity ratio of 2.90. The firm has a market capitalization of $482.86, a price-to-earnings ratio of -4.27 and a beta of 1.29. Depomed has a 1 year low of $4.31 and a 1 year high of $18.40.

In related news, insider Arthur J. Higgins purchased 75,000 shares of Depomed stock in a transaction dated Thursday, December 14th. The stock was purchased at an average cost of $8.16 per share, with a total value of $612,000.00. The purchase was disclosed in a legal filing with the SEC, which is available at this link. Insiders own 2.59% of the company’s stock.

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Piedmont Investment Advisors LLC bought a new position in shares of Depomed in the 2nd quarter worth $145,000. Voya Investment Management LLC raised its position in shares of Depomed by 10.4% in the 2nd quarter. Voya Investment Management LLC now owns 29,495 shares of the specialty pharmaceutical company’s stock worth $317,000 after acquiring an additional 2,790 shares in the last quarter. Quantitative Investment Management LLC bought a new position in shares of Depomed in the 2nd quarter worth $335,000. BNP Paribas Arbitrage SA raised its position in shares of Depomed by 71.0% in the 3rd quarter. BNP Paribas Arbitrage SA now owns 32,251 shares of the specialty pharmaceutical company’s stock worth $187,000 after acquiring an additional 13,388 shares in the last quarter. Finally, Stevens Capital Management LP bought a new position in shares of Depomed in the 3rd quarter worth $188,000. 90.79% of the stock is owned by hedge funds and other institutional investors.

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About Depomed

Depomed, Inc is a specialty pharmaceutical company. The Company focuses on pain and other central nervous system (CNS) conditions. Its products include NUCYNTA ER (tapentadol extended release tablets), NUCYNTA IR (NUCYNTA) (tapentadol), Gralise (gabapentin), CAMBIA (diclofenac potassium for oral solution), Zipsor (diclofenac potassium) and Lazanda (fentanyl).

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