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 2%.

Markets are at 5-year highs! Discover the best stocks to own. Click here for our fresh Feature Stock Pick now!

Forest Laboratories Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 65.28% to $0.25 in the quarter versus EPS of $0.72 in the year-earlier quarter.

Revenue: Decreased 22.18% to $821.6 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Forest Laboratories Inc. reported adjusted EPS income of $0.25 per share. By that measure, the company beat the mean analyst estimate of $0.15. It beat the average revenue estimate of $805.73 million.

Quoting Management: Howard Solomon, Chairman and Chief Executive Officer of Forest, said: “Fiscal year 2013 was an important transition year for our Company following the loss of patent exclusivity for Lexapro in March 2012. In the last few years we have had the confluence of two major events – the expiration of our patent on Lexapro, and the launch of seven new products – the earliest of which was Bystolic which was launched in 2008, followed by six new product launches including two this past December. Assuming regulatory approval, two additional new products will be launched this year.”

Key Stats (on next page)…

Revenue increased 13.69% from $722.69 million in the previous quarter. EPS increased to $0.25 in the quarter versus EPS of $-0.21 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 $0.17 to a profit $0.12. For the current year, the average estimate has moved down from a profit of $0.39 to a profit of $0.37 over the last ninety days.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

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

More Articles About:   , , ,  

More from The Cheat Sheet