Forest Laboratories Earnings: Here’s Why Shares are Up Now

Forest Laboratories Inc. (NYSE:FRX) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 0.16%.

Forest Laboratories Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 67.86% to $0.09 in the quarter versus EPS of $0.28 in the year-earlier quarter.

Revenue: Rose 1.43% to $832.9 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Forest Laboratories Inc. reported adjusted EPS income of $0.09 per share. By that measure, the company beat the mean analyst estimate of $0.08. It beat the average revenue estimate of $808 million.

Quoting Management: Howard Solomon, Chairman and Chief Executive Officer of Forest, said: “We are very pleased with the financial results for the quarter and particularly with the significant percentage increases in the sales of almost all of our new products and with the initial response to Linzess and Tudorza which were both launched this past December. Collectively, our next generation products had sales of $294.1 million in the quarter, representing 47.8% growth in comparison to the comparable prior year quarter.”

Key Stats (on next page)…

Revenue increased 1.37% from $821.67 million in the previous quarter. EPS decreased 55% from $0.20 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.16 to a profit $0.15. For the current year, the average estimate has moved down from a profit of $0.89 to a profit of $0.88 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)