The 10-second takeaway
For the quarter ended June 30 (Q2), Shire beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue improved and GAAP earnings per share expanded.
Gross margins expanded, operating margins shrank, net margins increased.
Shire booked revenue of $1.21 billion. The 15 analysts polled by S&P Capital IQ expected sales of $1.19 billion on the same basis. GAAP reported sales were 14% higher than the prior-year quarter's $1.06 billion.
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 $1.68. The 14 earnings estimates compiled by S&P Capital IQ anticipated $1.52 per share. GAAP EPS of $0.41 for Q2 were 14% higher than the prior-year quarter's $0.36 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 87.4%, 90 basis points better than the prior-year quarter. Operating margin was 25.3%, 310 basis points worse than the prior-year quarter. Net margin was 19.7%, 40 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.16 billion. On the bottom line, the average EPS estimate is $1.47.
Next year's average estimate for revenue is $4.72 billion. The average EPS estimate is $6.02.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 120 members out of 140 rating the stock outperform, and 20 members rating it underperform. Among 44 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 33 give Shire a green thumbs-up, and 11 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Shire is outperform, with an average price target of $103.41.
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