Watson Pharmaceuticals 2Q Earnings Pregame Scorecard

Published July 23, 2012

| FOXBusiness

For the last five quarters, Watson Pharmaceuticals (WPI) has exceeded analyst expectations. The company will try to continue the streak when it reports its latest earnings on Thursday, July 26, 2012.

Expectations

Analysts currently expect Watson Pharmaceuticals to come in with earnings of $1.38 per share on revenues of $1.35 billion. Estimates from analysts range from earnings per share to earnings per share. Over the past two months, the average estimate has moved down from $1.40.

Stock Movement

The stock fell $4.67 per share between May 29, 2012 and June 4, 2012.

Company Fundamental Trends

The company enters this earnings announcement with substantial revenue momentum. The company has averaged year-over-year revenue growth of 45.5% over the last four quarters. The impending earnings announcement offers the opportunity expand on positive earnings momentum gained over last three quarters. Net income rose more than twofold in the third quarter of the last fiscal year and more than fivefold in the fourth quarter of the last fiscal year before increasing again in the first quarter. Stock Ratings

Analysts are bullish on the stock as 16 analysts rate it as a buy and there are no sell ratings. That rating hasn't budged in three months as the average analyst rating of the stock has remained steadfast.

Last Quarter's Results

In the first quarter, profit rose 21% to $54.8 million (43 cents a share) from $45.3 million (36 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 73.9% to $1.52 billion from $876.5 million.

Summary

Reporting Period: 2Q

Date of Release: Thursday, July 26, 2012 before market open

EPS: $1.38

Revenue Estimate: $1.35 billion

(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

URL

http://www.foxbusiness.com/markets/2012/07/23/watson-pharmaceuticals-2q-earnings-pregame-scorecard/