Q: Clearly the Street was very impressed with CPH's Q4 and YE earnings that were released on Friday (up 17% despite another tough day in the markets). As always, I would appreciate your view.
5i Research Answer:
EPS of $0.51 beat estimates of $0.1518 and sales of $12.22M missed estimates of $12.52M. Sales grew 51% year-over-year, and earnings grew substantially. Its US segment saw a huge jump in growth driven by the acquisition and strong performance of the Natroba dermatology product. Management noted the potential for further acquisitions or in-licensing deals, the expansion of the US platform, and the potential for Canadian approval and launch of Natroba. These were solid results, and the stock jumped on the day. Growth is reacclerating, margins are rising, free cash flow is good, and its forward P/E is still reasonable at 16X. We continue to like it here.