Covance (NYSE: CVD ) is expected to report Q4 earnings on Jan. 24. Here's what Wall Street wants to see:
The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Covance's revenues will grow 3.3% and EPS will drop -2.7%.
The average estimate for revenue is $550.3 million. On the bottom line, the average EPS estimate is $0.71.
Last quarter, Covance booked revenue of $544.8 million. GAAP reported sales were 0.3% higher than the prior-year quarter's $543.3 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Last quarter, non-GAAP EPS came in at $0.72. GAAP EPS of $0.69 for Q3 were 3.0% higher than the prior-year quarter's $0.67 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the preceding quarter, gross margin was 29.2%, 20 basis points worse than the prior-year quarter. Operating margin was 8.9%, 150 basis points worse than the prior-year quarter. Net margin was 6.9%, 60 basis points worse than the prior-year quarter.
The full year's average estimate for revenue is $2.16 billion. The average EPS estimate is $2.68.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 313 members out of 322 rating the stock outperform, and nine members rating it underperform. Among 115 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 113 give Covance a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Covance is outperform, with an average price target of $51.27.
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