The 10-second takeaway
For the quarter ended March 31 (Q1), Shire missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted slightly. Non-GAAP earnings per share grew. GAAP earnings per share shrank significantly.
Gross margins expanded, operating margins increased, net margins dropped.
Shire booked revenue of $1.16 billion. The 11 analysts polled by S&P Capital IQ wanted to see revenue of $1.22 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 $1.63. The 11 earnings estimates compiled by S&P Capital IQ forecast $1.57 per share. Non-GAAP EPS of $1.63 for Q1 were 10% higher than the prior-year quarter's $1.48 per share. GAAP EPS of $0.12 for Q1 were 71% lower than the prior-year quarter's $0.41 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 86.6%, 10 basis points better than the prior-year quarter. Operating margin was 29.5%, 450 basis points better than the prior-year quarter. Net margin was 5.6%, much worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.23 billion. On the bottom line, the average EPS estimate is $1.65.
Next year's average estimate for revenue is $4.93 billion. The average EPS estimate is $6.70.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 114 members out of 133 rating the stock outperform, and 19 members rating it underperform. Among 42 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 33 give Shire a green thumbs-up, and nine give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Shire is outperform, with an average price target of $107.50.
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