The Gory Details on Shire's Double Miss

Seth Jayson, The Motley Fool
Updated

Shire (NAS: SHPG) reported earnings on Oct. 25. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended Sep. 30 (Q3), Shire missed estimates on revenues and missed estimates on earnings per share.

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


Gross margins were steady, operating margins grew, net margins grew.

Revenue details
 Shire logged revenue of $1.10 billion. The 17 analysts polled by S&P Capital IQ predicted revenue of $1.16 billion on the same basis. GAAP reported sales were 1.3% higher than the prior-year quarter's $1.09 billion.

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 $1.36. The 16 earnings estimates compiled by S&P Capital IQ predicted $1.47 per share. GAAP EPS of $0.40 for Q3 were 18% higher than the prior-year quarter's $0.34 per share.

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 84.7%, about the same as the prior-year quarter. Operating margin was 24.6%, 10 basis points better than the prior-year quarter. Net margin was 20.6%, 280 basis points better than the prior-year quarter.

Looking ahead
 Next quarter's average estimate for revenue is $1.20 billion. On the bottom line, the average EPS estimate is $1.52.

Next year's average estimate for revenue is $4.73 billion. The average EPS estimate is $6.15.

Investor sentiment

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Shire is outperform, with an average price target of $99.58.

The article The Gory Details on Shire's Double Miss originally appeared on Fool.com.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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