Dr. Reddy's Laboratories
The 10-second takeaway
For the quarter ended March 31 (Q4), Dr. Reddy's Laboratories beat slightly on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share contracted.
Gross margins contracted, operating margins improved, net margins dropped.
Dr. Reddy's Laboratories reported revenue of $522.3 million. The seven analysts polled by S&P Capital IQ expected to see revenue of $513.8 million on the same basis. GAAP reported sales were 15% higher than the prior-year quarter's $452.6 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 $0.51. The one earnings estimate compiled by S&P Capital IQ anticipated $0.52 per share. GAAP EPS of $0.40 for Q4 were 9.1% lower than the prior-year quarter's $0.44 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 52.6%, 170 basis points worse than the prior-year quarter. Operating margin was 20.0%, 500 basis points better than the prior-year quarter. Net margin was 12.9%, 370 basis points worse than the prior-year quarter.
On the bottom line, the average EPS estimate is $0.40.
Next year's average estimate for revenue is $2.00 billion. The average EPS estimate is $1.94.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 506 members out of 535 rating the stock outperform, and 29 members rating it underperform. Among 115 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 109 give Dr. Reddy's Laboratories a green thumbs-up, and six give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Dr. Reddy's Laboratories is outperform, with an average price target of $35.71.
The drug and healthcare investing landscape is littered with also-rans and a few major winners. Is Dr. Reddy's Laboratories the right stock for you? Read "Discover the Next Rule-Breaking Multibagger" to learn about a company David Gardner believes will be a phenomenal success over the next few years. Click here for instant access to this free report.
- Add Dr. Reddy's Laboratories to My Watchlist.