Forest Laboratories Beats on Both Top and Bottom Lines
Forest Laboratories (NYS: FRX) reported earnings on April 17. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q4), Forest Laboratories beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted and GAAP earnings per share dropped significantly.
Gross margins improved, operating margins contracted, net margins dropped.
Forest Laboratories reported revenue of $1.06 billion. The 24 analysts polled by S&P Capital IQ predicted revenue of $1.02 billion on the same basis. GAAP reported sales were 7.2% lower than the prior-year quarter's $1.13 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.78. The 27 earnings estimates compiled by S&P Capital IQ averaged $0.70 per share on the same basis. GAAP EPS of $0.72 for Q4 were 35% lower than the prior-year quarter's $1.11 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 79.3%, 30 basis points better than the prior-year quarter. Operating margin was 19.8%, 1,570 basis points worse than the prior-year quarter. Net margin was 18.4%, 1,010 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $828.0 million. On the bottom line, the average EPS estimate is $0.38.
Next year's average estimate for revenue is $3.32 billion.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Forest Laboratories is hold, with an average price target of $35.48.
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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 here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. 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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