Forest Labs Earnings Cheat Sheet: Fourth Straight Quarter of Profit Growth

S&P 500 (NYSE:SPY) component Forest Laboratories, Inc. (NYSE:FRX) reported its results for the first quarter. Forest Laboratories Inc. and its subsidiaries develop, manufacture and sell prescription drug products.

Don’t Miss: Wall St. Cheat Sheet’s newest Feature Trades of the Month!

Forest Laboratories Earnings Cheat Sheet for the First Quarter

Results: Net income for the drug manufacturer rose to $258.1 million (90 cents per share) vs. $117.5 million (39 cents per share) in the same quarter a year earlier. This is a more than twofold rise from the year earlier quarter.

Revenue: Rose 8.7% to $1.15 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: FRX fell short of the mean analyst estimate of 96 cents per share. Analysts were expecting revenue of $1.13 billion.

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% and in the third quarter of the last fiscal year, the figure rose 52.5%.

Gross margin shrank 0.2 percentage point to 78%. The contraction appeared to be driven by increased costs, which rose 9.5% from the year earlier quarter while revenue rose 8.7%.

Revenue has risen the past four quarters. Revenue increased 12.7% to $1.13 billion in the 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 and climbed 2.4% in the second quarter of the last fiscal year from the year-ago quarter.

The company fell short of forecasts after beating estimates in the previous two quarters. In the fourth quarter of the last fiscal year, it topped the mark by 4 cents, and in the third quarter of the last fiscal year, it was ahead by 35 cents.

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), Abbott Laboratories (NYSE:ABT), Impax Laboratories, Inc. (NASDAQ:IPXL), Par Pharmaceutical Companies, Inc. (NYSE:PRX), and Jazz Pharmaceuticals, Inc. (NASDAQ:JAZZ).

Don’t Miss Wall St. Cheat Sheet’s newest Feature Trades of the Month!

(Source: Xignite Financials)