The 10-second takeaway
For the quarter ended March 31 (Q1), WuXi PharmaTech beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded. Non-GAAP earnings per share grew. GAAP earnings per share increased.
Gross margins grew, operating margins dropped, net margins shrank.
WuXi PharmaTech logged revenue of $131.9 million. The six analysts polled by S&P Capital IQ foresaw a top line of $130.5 million on the same basis. GAAP reported sales were 12% higher than the prior-year quarter's $118.0 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 $0.35. The five earnings estimates compiled by S&P Capital IQ forecast $0.32 per share. Non-GAAP EPS of $0.35 for Q1 were 6.1% higher than the prior-year quarter's $0.33 per share. GAAP EPS of $0.30 for Q1 were 3.4% higher than the prior-year quarter's $0.29 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 36.0%, 50 basis points better than the prior-year quarter. Operating margin was 17.4%, 10 basis points worse than the prior-year quarter. Net margin was 16.5%, 130 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $142.3 million. On the bottom line, the average EPS estimate is $0.37.
Next year's average estimate for revenue is $572.8 million. The average EPS estimate is $1.49.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 326 members out of 346 rating the stock outperform, and 20 members rating it underperform. Among 76 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 71 give WuXi PharmaTech a green thumbs-up, and five 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 $20.34.
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