China Cord Blood Beats Up on Analysts Yet Again

China Cord Blood (NYSE: CO  ) reported earnings on June 18. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q4), China Cord Blood crushed expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue increased significantly. GAAP earnings per share dropped.

Gross margins increased, operating margins grew, net margins shrank.

Revenue details
China Cord Blood tallied revenue of $21.4 million. The one analyst polled by S&P Capital IQ expected to see revenue of $16.7 million on the same basis. GAAP reported sales were 35% higher than the prior-year quarter's $15.8 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.05. The one earnings estimate compiled by S&P Capital IQ anticipated $0.02 per share. GAAP EPS of $0.05 for Q4 were 17% lower than the prior-year quarter's $0.06 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 79.8%, 320 basis points better than the prior-year quarter. Operating margin was 38.2%, 330 basis points better than the prior-year quarter. Net margin was 17.3%, much worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
On the bottom line, the average EPS estimate is $0.04.

Next year's average estimate for revenue is $98.7 million. The average EPS estimate is $0.26.

Investor sentiment
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 35 members out of 56 rating the stock outperform, and 21 members rating it underperform. Among 18 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), seven give China Cord Blood 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 China Cord Blood is buy, with an average price target of $5.50.

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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 has no position in any of the stocks mentioned. 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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