Does The Street Have GlaxoSmithKline Figured Out?

GlaxoSmithKline (NYSE: GSK  ) is expected to report Q4 earnings on Feb. 6. 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 GlaxoSmithKline's revenues will expand 3.0% and EPS will increase 18.0%.

The average estimate for revenue is $11.19 billion. On the bottom line, the average EPS estimate is $1.05.

Revenue details
Last quarter, GlaxoSmithKline booked revenue of $10.52 billion. 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 details
Last quarter, non-GAAP EPS came in at $0.84. 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.

Recent performance
For the preceding quarter, gross margin was 70.2%, 80 basis points worse than the prior-year quarter. Operating margin was 27.0%, 390 basis points worse than the prior-year quarter. Net margin was 17.2%, 220 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $43.23 billion. The average EPS estimate is $3.88.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 35 members out of 39 rating the stock outperform, and four members rating it underperform. Among two CAPS All-Star picks (recommendations by the highest-ranked CAPS members), two 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.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool recommends GlaxoSmithKline. Try any of our Foolish newsletter services free for 30 days. We Fools may not 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.

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