The 10-second takeaway
For the quarter ended June 30 (Q2), Warner Chilcott beat expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share shrank significantly.
Gross margins improved, operating margins grew, net margins dropped.
Warner Chilcott logged revenue of $638.0 million. The 15 analysts polled by S&P Capital IQ predicted sales of $604.9 million on the same basis. GAAP reported sales were 4.8% lower than the prior-year quarter's $670.3 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 $1.03. The 18 earnings estimates compiled by S&P Capital IQ averaged $0.79 per share. GAAP EPS of $0.21 for Q2 were 25% lower than the prior-year quarter's $0.28 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 89.0%, 410 basis points better than the prior-year quarter. Operating margin was 38.9%, 1,660 basis points better than the prior-year quarter. Net margin was 8.3%, 240 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $593.3 million. On the bottom line, the average EPS estimate is $0.76.
Next year's average estimate for revenue is $2.48 billion. The average EPS estimate is $3.65.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 138 members out of 167 rating the stock outperform, and 29 members rating it underperform. Among 48 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 40 give Warner Chilcott a green thumbs-up, and eight 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 $24.29.
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