Covance Beats Analyst Estimates on EPS
Nov 6th 2012 1:05PM
Updated Nov 6th 2012 1:08PM
Covance (NYS: CVD) reported earnings on Nov. 5. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Covance met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted and GAAP earnings per share grew.
Margins dropped across the board.
Covance reported revenue of $544.8 million. The 13 analysts polled by S&P Capital IQ anticipated a top line of $546.5 million on the same basis. GAAP reported sales were 10% higher than the prior-year quarter's $543.3 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 $0.72. The 17 earnings estimates compiled by S&P Capital IQ predicted $0.67 per share. GAAP EPS of $0.69 for Q3 were 3.0% higher than the prior-year quarter's $0.67 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 26.0%, 340 basis points worse than the prior-year quarter. Operating margin was 5.1%, 530 basis points worse than the prior-year quarter. Net margin was 6.3%, 120 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $553.0 million. On the bottom line, the average EPS estimate is $0.69.
Next year's average estimate for revenue is $2.17 billion. The average EPS estimate is $2.61.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 313 members out of 322 rating the stock outperform, and nine members rating it underperform. Among 110 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 107 give Covance a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Covance is outperform, with an average price target of $51.27.
- Add Covance to My Watchlist.
The article Covance Beats Analyst Estimates on EPS 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 of Motley 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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