The 10-second takeaway
For the quarter ended Sep. 30 (Q3), WuXi PharmaTech beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share increased significantly.
Margins contracted across the board.
WuXi PharmaTech booked revenue of $125.8 million. The eight analysts polled by S&P Capital IQ predicted revenue of $123.2 million on the same basis. GAAP reported sales were 21% higher than the prior-year quarter's $104.0 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 $0.36. The seven earnings estimates compiled by S&P Capital IQ forecast $0.30 per share. GAAP EPS of $0.30 for Q3 were 25% higher than the prior-year quarter's $0.24 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 36.6%, 240 basis points worse than the prior-year quarter. Operating margin was 17.0%, 440 basis points worse than the prior-year quarter. Net margin was 16.9%, 290 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $124.9 million. On the bottom line, the average EPS estimate is $0.32.
Next year's average estimate for revenue is $496.9 million. The average EPS estimate is $1.29.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 328 members out of 348 rating the stock outperform, and 20 members rating it underperform. Among 70 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 67 give WuXi PharmaTech a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on WuXi PharmaTech is outperform, with an average price target of $18.70.
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