The 10-second takeaway
For the quarter ended March 31 (Q1), Warner Chilcott met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped. Non-GAAP earnings per share shrank significantly. GAAP earnings per share didn't change.
Gross margins dropped, operating margins dropped, net margins grew.
Warner Chilcott reported revenue of $593.0 million. The 15 analysts polled by S&P Capital IQ anticipated net sales of $593.5 million on the same basis. GAAP reported sales were 13% lower than the prior-year quarter's $685.0 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 $0.92. The 19 earnings estimates compiled by S&P Capital IQ predicted $0.84 per share. Non-GAAP EPS of $0.92 for Q1 were 21% lower than the prior-year quarter's $1.16 per share. GAAP EPS of $0.45 were the same as the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 88.2%, 130 basis points worse than the prior-year quarter. Operating margin was 35.2%, 280 basis points worse than the prior-year quarter. Net margin was 19.1%, 260 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $586.7 million. On the bottom line, the average EPS estimate is $0.82.
Next year's average estimate for revenue is $2.35 billion. The average EPS estimate is $3.30.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 173 members out of 202 rating the stock outperform, and 29 members rating it underperform. Among 57 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 50 give Warner Chilcott a green thumbs-up, and seven give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Warner Chilcott is outperform, with an average price target of $18.40.
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