WuXi PharmaTech Beats on Both Top and Bottom Lines

WuXi PharmaTech (NYSE: WX  ) reported earnings on May 10. Here are the numbers you need to know.

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

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

Margins dropped across the board.

Revenue details
WuXi PharmaTech logged revenue of $118.0 million. The eight analysts polled by S&P Capital IQ anticipated a top line of $114.1 million on the same basis. GAAP reported sales were 26% higher than the prior-year quarter's $93.6 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 $0.33. The seven earnings estimates compiled by S&P Capital IQ anticipated $0.26 per share. GAAP EPS of $0.28 for Q1 were 17% higher than the prior-year quarter's $0.24 per share.

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 35.5%, 160 basis points worse than the prior-year quarter. Operating margin was 17.5%, 370 basis points worse than the prior-year quarter. Net margin was 17.8%, 170 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $118.6 million. On the bottom line, the average EPS estimate is $0.32.

Next year's average estimate for revenue is $476.0 million. The average EPS estimate is $1.21.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 331 members out of 353 rating the stock outperform, and 22 members rating it underperform. Among 73 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 69 give WuXi PharmaTech a green thumbs-up, and four give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on WuXi PharmaTech is outperform, with an average price target of $17.68.

Over the decades, small-cap stocks like WuXi PharmaTech have provided market-beating returns, provided they're value-priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Get instant access to this free report.

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.

Read/Post Comments (1) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On May 11, 2012, at 9:28 PM, timothy55 wrote:

    Although WX beat on EPS & Gross Revs, the margin contraction is a little worriesome....with over 5000 employees...this should be something to keep their eye on in the future.

    TB

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1885889, ~/Articles/ArticleHandler.aspx, 10/2/2014 6:44:59 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement