Forest Laboratories, Inc. First Quarter Earnings Preview

S&P 500 (NYSE:SPY) component Forest Laboratories, Inc. (NYSE:FRX) will unveil its latest earnings on Tuesday, July 19, 2011. Forest Laboratories Inc. and its subsidiaries develop, manufacture and sell prescription drug products.

Forest Laboratories, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 96 cents per share, a rise of 1.1% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 98 cents. Between one and three months ago, the average estimate moved down, but it has been unchanged at 96 cents during the last month. For the year, analysts are projecting net income of $3.68 per share, a decline of 16.6% from last year.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 4 cents, reporting profit of $1.12 per share against a mean estimate of net income of $1.08 per share.

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Wall St. Revenue Expectations: On average, analysts predict $1.12 billion in revenue this quarter, a rise of 4.7% from the year ago quarter. Analysts are forecasting total revenue of $4.49 billion for the year, a rise of 1.6% from last year’s revenue of $4.42 billion.

Analyst Ratings: Analysts are bullish on Forest Laboratories as 10 analysts rate it as a buy, three rate it as a sell and 12 rate it as a hold.

Key Stats:

The company has now seen net income rise in three straight quarters. In the fourth quarter of the last fiscal year, net income rose 1327.4% while it rose 52.5% in the third quarter of the last fiscal year and 53.3% in the second quarter of the last fiscal year.

Revenue has risen the past four quarters. Revenue increased 12.7% to $1.13 billion in fourth quarter of the last fiscal year. The figure rose 5.9% in the third quarter of the last fiscal year from the year earlier, climbed 2.4% in the second quarter of the last fiscal year from the year-ago quarter and 6.4% in the first quarter of the last fiscal year.

Competitors to Watch: Johnson & Johnson (NYSE:JNJ), AstraZeneca plc (NYSE:AZN), Lannett Company, Inc. (AMEX:LCI), Watson Pharmaceuticals, Inc. (NYSE:WPI), Mylan Inc. (NASDAQ:MYL), Pfizer Inc. (NYSE:PFE), Merck (NYSE:MRK), Abbott Laboratories (NYSE:ABT), Impax Laboratories, Inc. (NASDAQ:IPXL), Par Pharmaceutical Companies, Inc. (NYSE:PRX), and Jazz Pharmaceuticals, Inc. (NASDAQ:JAZZ).

Stock Price Performance: During April 14, 2011 to July 12, 2011, the stock price had risen $4.86 (14.4%) from $33.75 to $38.61. The stock price saw one of its best stretches over the last year between October 22, 2010, and October 29, 2010, when shares rose for six-straight days, rising 2.6% (+87 cents) over that span. It saw one of its worst periods between October 4, 2010, and October 13, 2010, when shares fell for eight-straight days, falling 7.5% (-$2.49) over that span. Shares are up $6.63 (+20.7%) year to date.

(Source: Xignite Financials)

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