Warner Chilcott
The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Warner Chilcott beat slightly on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted and GAAP earnings per share grew significantly.
Gross margins shrank, operating margins expanded, net margins increased.
Revenue details
Warner Chilcott booked revenue of $606.0 million. The 17 analysts polled by S&P Capital IQ anticipated a top line of $596.0 million on the same basis. GAAP reported sales were 7.5% lower than the prior-year quarter's $655.5 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 $0.99. The 20 earnings estimates compiled by S&P Capital IQ forecast $0.77 per share. GAAP EPS of $0.45 for Q3 were 246% higher than the prior-year quarter's $0.13 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 87.0%, 60 basis points worse than the prior-year quarter. Operating margin was 32.5%, 450 basis points better than the prior-year quarter. Net margin was 18.6%, 1,360 basis points better than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $575.2 million. On the bottom line, the average EPS estimate is $0.69.
Next year's average estimate for revenue is $2.50 billion. The average EPS estimate is $3.85.
Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 155 members out of 184 rating the stock outperform, and 29 members rating it underperform. Among 48 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 41 give Warner Chilcott a green thumbs-up, and seven give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Warner Chilcott is outperform, with an average price target of $20.65.
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