The 10-second takeaway
For the quarter ended Dec. 31 (Q4), WuXi PharmaTech beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly. Non-GAAP earnings per share grew significantly. GAAP earnings per share grew significantly.
Gross margins contracted, operating margins expanded, net margins contracted.
WuXi PharmaTech booked revenue of $125.7 million. The seven analysts polled by S&P Capital IQ predicted sales of $124.0 million on the same basis. GAAP reported sales were 16% higher than the prior-year quarter's $108.5 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 $0.38. The five earnings estimates compiled by S&P Capital IQ predicted $0.31 per share. Non-GAAP EPS of $0.38 for Q4 were 23% higher than the prior-year quarter's $0.31 per share. GAAP EPS of $0.33 for Q4 were 38% 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 38.8%, 40 basis points worse than the prior-year quarter. Operating margin was 18.8%, 20 basis points better than the prior-year quarter. Net margin was 19.0%, 260 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $131.8 million. On the bottom line, the average EPS estimate is $0.32.
Next year's average estimate for revenue is $570.7 million. The average EPS estimate is $1.46.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 323 members out of 343 rating the stock outperform, and 20 members rating it underperform. Among 79 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 75 give WuXi PharmaTech a green thumbs-up, and four 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 $18.87.
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