Dr. Reddy's Laboratories
The 10-second takeaway
For the quarter ended Dec. 31 (Q3), Dr. Reddy's Laboratories missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue was unchanged and GAAP earnings per share dropped significantly.
Margins shrank across the board.
Dr. Reddy's Laboratories reported revenue of $522.1 million. The 14 analysts polled by S&P Capital IQ looked for revenue of $545.7 million 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 $0.40. The two earnings estimates compiled by S&P Capital IQ predicted $0.53 per share. GAAP EPS of $0.40 for Q3 were 30% lower than the prior-year quarter's $0.57 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 52.7%, 720 basis points worse than the prior-year quarter. Operating margin was 16.5%, 1,070 basis points worse than the prior-year quarter. Net margin was 13.2%, 530 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $595.5 million. On the bottom line, the average EPS estimate is $0.60.
Next year's average estimate for revenue is $2.12 billion. The average EPS estimate is $1.89.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 483 members out of 509 rating the stock outperform, and 26 members rating it underperform. Among 112 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 109 give Dr. Reddy's Laboratories 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 Dr. Reddy's Laboratories is outperform, with an average price target of $35.13.
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