S&P 500 (NYSE:SPY) component Watson Pharmaceuticals Inc. (NYSE:WPI) reported higher profit for the second quarter as revenue showed growth. Watson Pharmaceuticals Inc is a pharmaceutical company that develops, manufactures, markets, sells and distributes pharmaceutical products.
Watson Pharmaceuticals Earnings Cheat Sheet for the Second Quarter
Results: Net income for Watson Pharmaceuticals Inc. rose to $127.9 million ($1.01 per share) vs. $70.6 million (57 cents per share) in the same quarter a year earlier. This marks a rise of 81.2% from the year earlier quarter.
Revenue: Rose 25.7% to $1.1 billion from the year earlier quarter.
Actual vs. Wall St. Expectations: WPI beat the mean analyst estimate of $1 per share. It beat the average revenue estimate of $990.6 million.
Quoting Management: “Our record $1billion in net revenues in the second quarter demonstrates the strength of our combined Global Generics and Global Brands strategies. Our May 2nd launch of methylphenidate ER added significant additional earnings power to our strong, sustained release base business and, combined with the expansion of our international generics business, delivered 39percent growth in Global Generics net revenues.”
Revenue has risen the past four quarters. Revenue increased 2.3% to $876.5 million in the first quarter. The figure rose 21.3% in the fourth quarter of the last fiscal year from the year earlier and climbed 33.3% in the third quarter of the last fiscal year from the year-ago quarter.
Last quarter’s profit increase breaks a streak of three consecutive quarters of year-over-year profit decreases. In the first quarter, net income fell 35.1% from the year earlier, while the figure dropped 67.8% in the fourth quarter of the last fiscal year and 59.2% in the third quarter of the last fiscal year.
The company has now beaten estimates the last two quarters. In the first quarter, it topped expectations with net income of 89 cents versus a mean estimate of net income of 86 cents per share.
Competitors to Watch: Mylan Inc. (NASDAQ:MYL), Novartis AG (NYSE:NVS), Par Pharmaceutical Companies, Inc. (NYSE:PRX), Pfizer Inc. (NYSE:PFE), Impax Laboratories, Inc. (NASDAQ:IPXL), Lannett Company, Inc. (AMEX:LCI), Teva Pharmaceutical Industries Ltd (NASDAQ:TEVA), Columbia Laboratories Inc. (NASDAQ:CBRX), Perrigo Company (NASDAQ:PRGO), and Johnson & Johnson (NYSE:JNJ).
(Source: Xignite Financials)