The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Shire beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share improved significantly.
Gross margins contracted, operating margins improved, and net margins improved.
Shire reported revenue of $1.14 billion. The 19 analysts polled by S&P Capital IQ predicted revenue of $1.13 billion. GAAP sales were 23% higher than the prior-year quarter's $931.2 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $1.51. The 16 earnings estimates compiled by S&P Capital IQ anticipated $1.37 per share on the same basis. GAAP EPS of $0.44 for Q4 were 52% higher than the prior-year quarter's $0.29 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 86.6%, 30 basis points worse than the prior-year quarter. Operating margin was 27.9%, 600 basis points better than the prior-year quarter. Net margin was 22.4%, 460 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.15 billion. On the bottom line, the average EPS estimate is $1.46.
Next year's average estimate for revenue is $4.77 billion. The average EPS estimate is $6.12.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Shire is outperform, with an average price target of $107.79.
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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. 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.