The 10-second takeaway
For the quarter ended Sep. 30 (Q3), GlaxoSmithKline missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share dropped significantly.
Margins dropped across the board.
GlaxoSmithKline reported revenue of $10.52 billion. The 11 analysts polled by S&P Capital IQ predicted sales of $10.81 billion on the same basis. GAAP reported sales were 5.3% lower than the prior-year quarter's $11.11 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 $0.84. The two earnings estimates compiled by S&P Capital IQ forecast $0.92 per share. GAAP EPS of $0.36 for Q3 were 16% lower than the prior-year quarter's $0.43 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 68.1%, 410 basis points worse than the prior-year quarter. Operating margin was 25.7%, 500 basis points worse than the prior-year quarter. Net margin was 17.2%, 220 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $11.15 billion. On the bottom line, the average EPS estimate is $1.04.
Next year's average estimate for revenue is $43.39 billion. The average EPS estimate is $3.67.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 31 members out of 35 rating the stock outperform, and four members rating it underperform. Among three CAPS All-Star picks (recommendations by the highest-ranked CAPS members), three give GlaxoSmithKline a green thumbs-up, and give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on GlaxoSmithKline is outperform, with an average price target of $47.84.
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