Forest Laboratories Meets on the Top Line, Misses Where It Counts
Forest Laboratories (NYS: FRX) reported earnings on July 17. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended June 30 (Q1), Forest Laboratories met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue contracted significantly and GAAP earnings per share contracted significantly.
Gross margins expanded, operating margins shrank, net margins dropped.
Forest Laboratories recorded revenue of $821.1 million. The 22 analysts polled by S&P Capital IQ expected sales of $817.0 million on the same basis. GAAP reported sales were 28% lower than the prior-year quarter's $1.15 billion.
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 $0.21. The 19 earnings estimates compiled by S&P Capital IQ forecast $0.24 per share. GAAP EPS of $0.21 for Q1 were 77% lower than the prior-year quarter's $0.90 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 79.5%, 160 basis points better than the prior-year quarter. Operating margin was 9.2%, 2,050 basis points worse than the prior-year quarter. Net margin was 6.7%, 1,580 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $789.2 million. On the bottom line, the average EPS estimate is $0.05.
Next year's average estimate for revenue is $3.26 billion. The average EPS estimate is $0.73.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Forest Laboratories is hold, with an average price target of $36.41.
The drug and health care investing landscape is littered with also-rans and a few major winners. Is Forest Laboratories the right stock for you? Read "Discover the Next Rule-Breaking Multibagger" to learn about a company David Gardner believes will be a phenomenal success over the next few years. Click here for instant access to this free report.
- Add Forest Laboratories to My Watchlist.
The article Forest Laboratories Meets on the Top Line, Misses Where It Counts 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.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.