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.
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 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.
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.
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.
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.
The drug and health-care investing landscape is littered with also-rans and a few major winners. Is Warner Chilcott the right stock for you? Read "Discover the Next Rule-Breaking Multibagger" to learn about a company David Gardner believes will be a phenomenal success over the next few years. Get instant access to this free report.
- Add Warner Chilcott to My Watchlist.