Forest Laboratories, Inc. Second Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Forest Laboratories, Inc. (NYSE:FRX) will unveil its latest earnings on Tuesday, October 18, 2011. Forest Laboratories 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 98 cents per share, a decline of 2% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from 95 cents. Between one and three months ago, the average estimate moved up. It has been unchanged at 98 cents during the last month. For the year, analysts are projecting net income of $3.73 per share, a decline of 15.4% from last year.

Past Earnings Performance: Last quarter, the company beat estimates by 8 cents, coming in at profit of $1.04 a share versus the estimate of net income of 96 cents a share. It marked the fourth straight quarter of beating estimates.

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Wall St. Revenue Expectations: On average, analysts predict $1.16 billion in revenue this quarter, a rise of 6.4% from the year ago quarter. Analysts are forecasting total revenue of $4.5 billion for the year, a rise of 1.8% from last year’s revenue of $4.42 billion.

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

A Look Back: In the first quarter, profit rose more than twofold to $258.1 million (90 cents a share) from $117.5 million (39 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 8.2% to $1.15 billion from $1.06 billion.

Key Stats:

The company has seen net income rise in three straight quarters. Net income rose 1327.4% in the fourth quarter of the last fiscal year and 52.5% in the third quarter of the last fiscal year.

Revenue has risen the past four quarters. Revenue rose 12.7% in the fourth quarter of the last fiscal year from the year earlier, climbed 5.9% in the third quarter of the last fiscal year from the year-ago quarter and 2.4% in the second 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 July 19, 2011 to October 12, 2011, the stock price had fallen $6.18 (-16.1%) from $38.42 to $32.24. The stock price saw one of its best stretches over the last year between June 6, 2011 and June 14, 2011 when shares rose for seven-straight days, rising 7.2% (+$2.61) over that span. It saw one of its worst periods between July 21, 2011 and August 2, 2011 when shares fell for nine-straight days, falling 7.1% (-$2.76) over that span. Shares are up 26 cents (+0.8%) year to date.

(Source: Xignite Financials)

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