Watson Pharmaceuticals (NYS: WPI) is expected to report Q2 earnings on July 26. 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 Watson Pharmaceuticals' revenues will expand 25.0% and EPS will expand 36.6%.
The average estimate for revenue is $1.35 billion. On the bottom line, the average EPS estimate is $1.38.
Last quarter, Watson Pharmaceuticals booked revenue of $1.52 billion. GAAP reported sales were 74% higher than the prior-year quarter's $876.5 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Last quarter, non-GAAP EPS came in at $1.64. GAAP EPS of $0.43 for Q1 were 19% higher than the prior-year quarter's $0.36 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the preceding quarter, gross margin was 40.7%, 730 basis points worse than the prior-year quarter. Operating margin was 8.0%, 630 basis points worse than the prior-year quarter. Net margin was 3.6%, 160 basis points worse than the prior-year quarter.
The full year's average estimate for revenue is $5.53 billion. The average EPS estimate is $5.77.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 192 members out of 216 rating the stock outperform, and 24 members rating it underperform. Among 74 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 68 give Watson Pharmaceuticals a green thumbs-up, and six give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Watson Pharmaceuticals is outperform, with an average price target of $69.23.
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The article Coming Soon: Watson Pharmaceuticals Earnings 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. 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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