Warner Chilcott Beats Up on Analysts Yet Again

Warner Chilcott (Nasdaq: WCRX  ) reported earnings on May 4. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Warner Chilcott beat expectations on revenues and crushed expectations on earnings per share.

Compared with the prior-year quarter, revenue dropped and GAAP earnings per share increased.

Margins increased across the board.

Revenue details
Warner Chilcott chalked up revenue of $685.0 million. The 17 analysts polled by S&P Capital IQ expected sales of $646.8 million on the same basis. GAAP reported sales were 9.5% lower than the prior-year quarter's $756.5 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $1.16. The 21 earnings estimates compiled by S&P Capital IQ predicted $0.93 per share. GAAP EPS were $0.45 for Q1 versus -$0.10 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 89.5%, 210 basis points better than the prior-year quarter. Operating margin was 38.0%, 770 basis points better than the prior-year quarter. Net margin was 16.5%, 1,970 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $631.5 million. On the bottom line, the average EPS estimate is $0.90.

Next year's average estimate for revenue is $2.53 billion. The average EPS estimate is $3.66.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 147 members out of 175 rating the stock outperform, and 28 members rating it underperform. Among 51 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 44 give Warner Chilcott a green thumbs-up, and seven give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Warner Chilcott is outperform, with an average price target of $23.39.

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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings. He is the co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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