Forest Labs 1Q Earnings Pregame Scorecard
Having exceeded expectations last quarter by 7 cents per share, Forest Labs (NYSE:FRX) is scheduled to report again on Tuesday.
Analysts currently expect Forest Labs to come in with earnings of 28 cents per share on revenues of $819.6 million. Estimates from analysts range from 16 cents per share to 39 cents per share. Over the past three months, the average estimate has moved down from 37 cents.
Last Quarter's Results
In the fourth quarter of the last fiscal year, profit fell 40.3% to $192.7 million (72 cents a share) from $322.5 million ($1.11 a share) the year earlier, but exceeded analyst expectations. Revenue fell 6.7% to $1.06 billion from $1.13 billion.
Analysts think investors should stand pat on Forest Labs with 13 of 23 analysts rating it hold. Analyst sentiment has been waning recently, as the average rating has dropped slightly over the past three months.
In terms of price changes, the stock's best recent streak was when it gained $2.91 per share between June 26, 2012 and July 3, 2012. Looking at change over the last three months, from April 13, 2012 and July 10, 2012, the stock price is up $2.26 (6.8%), from $33.45 to $35.71.
Company Fundamental Trends While last quarter's drop snapped a string of revenue increases, the company will look to right itself during the upcoming earnings period. Revenue rose 8.2% in the first quarter of the last fiscal year, 7.8% in the second quarter of the last fiscal year and 7.8%in the third quarter of the last fiscal year before dropping in the fourth quarter of the last fiscal year. On the heels of negative results over the past three quarters, the company is looking to rebound with this earnings announcement. Net income fell 12.7% in the second quarter of the last fiscal year, by 13.2% in the third quarter of the last fiscal year and again in the fourth quarter of the last fiscal year.
Reporting Period: 1Q
Date of Release: Tuesday, July 17, 2012 before market open
EPS: 28 cents
Revenue Estimate: $819.6 million
(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)