Shire Beats on Revenue, Matches Expectations on EPS

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Shire (NAS: SHPGY) reported earnings on April 26. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Shire beat slightly on revenues and met expectations on earnings per share.

Compared with the prior-year quarter, revenue grew significantly and GAAP earnings per share expanded.


Margins dropped across the board.

Revenue details
Shire booked revenue of $1.17 billion. The 17 analysts polled by S&P Capital IQ wanted to see sales of $1.15 billion on the same basis. GAAP reported sales were 21% higher than the prior-year quarter's $972.2 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $1.48. The 14 earnings estimates compiled by S&P Capital IQ averaged $1.50 per share. GAAP EPS of $0.41 for Q1 were 11% higher than the prior-year quarter's $0.37 per share.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 86.5%, 90 basis points worse than the prior-year quarter. Operating margin was 25.0%, 270 basis points worse than the prior-year quarter. Net margin was 20.3%, 140 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $1.18 billion. On the bottom line, the average EPS estimate is $1.52.

Next year's average estimate for revenue is $4.76 billion. The average EPS estimate is $6.13.

Investor sentiment

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Shire is hold, with an average price target of $113.02.

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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings. He is the co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has a disclosure policy

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

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