Dr. Reddy's Laboratories
The 10-second takeaway
For the quarter ended June 30 (Q1), Dr. Reddy's Laboratories missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share was unchanged.
Gross margins dropped, operating margins improved, net margins shrank.
Dr. Reddy's Laboratories logged revenue of $456.7 million. The three analysts polled by S&P Capital IQ predicted a top line of $469.0 million on the same basis. GAAP reported sales were 3.2% higher than the prior-year quarter's $442.6 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 $0.35. The one earnings estimate compiled by S&P Capital IQ predicted $0.41 per share. GAAP EPS of $0.35 were the same as the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 53.3%, 10 basis points worse than the prior-year quarter. Operating margin was 15.4%, 160 basis points better than the prior-year quarter. Net margin was 13.2%, 10 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $502.1 million. On the bottom line, the average EPS estimate is $0.43.
Next year's average estimate for revenue is $2.03 billion. The average EPS estimate is $1.80.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 496 members out of 523 rating the stock outperform, and 27 members rating it underperform. Among 103 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 98 give Dr. Reddy's Laboratories a green thumbs-up, and five 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 $33.70.
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