Can Forest Laboratories Beat These Numbers?

Seth Jayson, The Motley Fool
Updated

Forest Laboratories (NYS: FRX) is expected to report Q1 earnings on July 17. 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 Forest Laboratories' revenues will shrink 29.3% and EPS will decrease 76.0%.

The average estimate for revenue is $814.8 million. On the bottom line, the average EPS estimate is $0.25.


Revenue details
Last quarter, Forest Laboratories reported revenue of $1.06 billion. GAAP reported sales were 7.2% lower than the prior-year quarter's $1.13 billion.

anImage
anImage

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 $0.78. GAAP EPS of $0.72 for Q4 were 35% lower than the prior-year quarter's $1.11 per share.

anImage
anImage

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 79.3%, 30 basis points better than the prior-year quarter. Operating margin was 19.8%, 2,880 basis points worse than the prior-year quarter. Net margin was 18.4%, 1,010 basis points worse than the prior-year quarter.

Looking ahead
The full year's average estimate for revenue is $3.32 billion. The average EPS estimate is $0.69.

Investor sentiment
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.

At the time thisarticle 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.

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

Advertisement