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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