The 10-second takeaway
For the quarter ended March 31 (Q1), Shire beat slightly on revenues and met expectations on earnings per share.
Compared with the prior-year quarter, revenue grew significantly and GAAP earnings per share expanded.
Margins dropped across the board.
Shire booked revenue of $1.17 billion. The 17 analysts polled by S&P Capital IQ wanted to see sales of $1.15 billion on the same basis. GAAP reported sales were 21% higher than the prior-year quarter's $972.2 million.
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 $1.48. The 14 earnings estimates compiled by S&P Capital IQ averaged $1.50 per share. GAAP EPS of $0.41 for Q1 were 11% higher than the prior-year quarter's $0.37 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 86.5%, 90 basis points worse than the prior-year quarter. Operating margin was 25.0%, 270 basis points worse than the prior-year quarter. Net margin was 20.3%, 140 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.18 billion. On the bottom line, the average EPS estimate is $1.52.
Next year's average estimate for revenue is $4.76 billion. The average EPS estimate is $6.13.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Shire is hold, with an average price target of $113.02.
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