The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Life Technologies met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded slightly and GAAP earnings per share expanded significantly.
Gross margins shrank, operating margins contracted, net margins grew.
Life Technologies reported revenue of $998.9 million. The 20 analysts polled by S&P Capital IQ hoped for a top line of $989.5 million on the same basis. GAAP reported sales were 1.1% lower than the prior-year quarter's $1.01 billion.
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 $1.11. The 23 earnings estimates compiled by S&P Capital IQ anticipated $1.11 per share. GAAP EPS of $0.63 for Q4 were 24% higher than the prior-year quarter's $0.51 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 63.1%, 230 basis points worse than the prior-year quarter. Operating margin was 21.0%, 270 basis points worse than the prior-year quarter. Net margin was 11.0%, 180 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $964.4 million. On the bottom line, the average EPS estimate is $1.06.
Next year's average estimate for revenue is $3.90 billion. The average EPS estimate is $4.35.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 222 members out of 239 rating the stock outperform, and 17 members rating it underperform. Among 84 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 79 give Life Technologies 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 Life Technologies is outperform, with an average price target of $53.80.
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