Will These Numbers from GlaxoSmithKline Be Good Enough for You?

Seth Jayson, The Motley Fool
Updated

GlaxoSmithKline (NYS: GSK) is expected to report Q3 earnings on Oct. 31. Here's what Wall Street wants to see:

The 10-second takeaway
 Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict GlaxoSmithKline's revenues will decrease -2.0% and EPS will grow 4.5%.

The average estimate for revenue is $10.89 billion. On the bottom line, the average EPS estimate is $0.92.


Revenue details
 Last quarter, GlaxoSmithKline chalked up revenue of $10.14 billion. GAAP reported sales were 6.1% lower than the prior-year quarter's $10.79 billion.

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

EPS details
 Last quarter, non-GAAP EPS came in at $0.82. GAAP EPS of $0.39 for Q2 were 11% higher than the prior-year quarter's $0.35 per share.

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

Recent performance
 For the preceding quarter, gross margin was 72.4%, 230 basis points worse than the prior-year quarter. Operating margin was 30.9%, 120 basis points better than the prior-year quarter. Net margin was 19.4%, 290 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $43.46 billion. The average EPS estimate is $3.68.

Investor sentiment
 The stock has a four-star rating (out of five) at Motley Fool CAPS, with 31 members out of 35 rating the stock outperform, and four members rating it underperform. Among three CAPS All-Star picks (recommendations by the highest-ranked CAPS members), three give GlaxoSmithKline a green thumbs-up, and give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on GlaxoSmithKline is outperform, with an average price target of $48.52.

The article Will These Numbers from GlaxoSmithKline Be Good Enough for You? 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 owns shares of GlaxoSmithKline. Motley Fool newsletter services recommend GlaxoSmithKline. 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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