The 10-second takeaway
For the quarter ended Dec. 31 (Q4), GlaxoSmithKline met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue expanded slightly and GAAP earnings per share contracted significantly.
Margins dropped across the board.
GlaxoSmithKline notched revenue of $11.06 billion. The 14 analysts polled by S&P Capital IQ wanted to see revenue of $11.14 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $1.01. The two earnings estimates compiled by S&P Capital IQ predicted $1.05 per share. GAAP EPS of $0.29 for Q4 were 26% lower than the prior-year quarter's $0.39 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 70.4%, 290 basis points worse than the prior-year quarter. Operating margin was 28.5%, 540 basis points worse than the prior-year quarter. Net margin was 12.7%, 520 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $10.23 billion.
Next year's average estimate for revenue is $42.18 billion. The average EPS estimate is $4.06.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 35 members out of 39 rating the stock outperform, and four members rating it underperform. Among three CAPS All-Star picks (recommendations by the highest-ranked CAPS members), three give GlaxoSmithKline a green thumbs-up, and give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on GlaxoSmithKline is hold, with an average price target of $46.71.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool recommends GlaxoSmithKline. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.