Watson Pharmaceuticals, Inc. Second Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Watson Pharmaceuticals, Inc. (NYSE:WPI) will unveil its latest earnings on Tuesday, July 26, 2011. Watson Pharmaceuticals Inc is a pharmaceutical company that develops, manufactures, markets, sells and distributes pharmaceutical products. 4 Stocks Driving Action with Investors Now>>

Watson Pharmaceuticals, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of $1 per share, a rise of 20.5% 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 94 cents. Between one and three months ago, the average estimate moved up, and has risen from 97 cents during the last month. For the year, analysts are projecting profit of $4.31 per share, a rise of 33% from last year.

Past Earnings Performance: The company topped forecasts last quarter after being in line with estimates the quarter prior. In the first quarter, it reported net income of 89 cents per share versus a mean estimate of 86 cents. Two quarters ago, it reported profit of 93 cents per share.

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Wall St. Revenue Expectations: On average, analysts predict $990.6 million in revenue this quarter, a rise of 13.2% from the year ago quarter. Analysts are forecasting total revenue of $4.29 billion for the year, a rise of 20.2% from last year’s revenue of $3.57 billion.

Analyst Ratings: 11 out of 20 analysts surveyed (55%) have a buy rating on Watson Pharmaceuticals.. This is below the mean analyst rating of 10 competitors, which average 72.1% buy ratings.

Key Stats:

Revenue has risen the past four quarters. Revenue increased 2.3% to $876.5 million in first quarter. The figure rose 21.3% in the fourth quarter of the last fiscal year from the year earlier, climbed 33.3% in the third quarter of the last fiscal year from the year-ago quarter and 29.1% in the second quarter of the last fiscal year.

The company has now seen net income fall in each of the last three quarters. In first quarter, net income fell 35.1% from the year earlier, while the figure fell 67.8% in the fourth quarter of the last fiscal year and 59.2% in the third quarter of the last fiscal year.

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).

Stock Price Performance: During April 25, 2011 to July 20, 2011, the stock price had risen $10.38 (17.7%) from $58.79 to $69.17. The stock price saw one of its best stretches over the last year between October 6, 2010 and October 18, 2010 when shares rose for nine-straight days, rising 7.3% (+$3.21) over that span. It saw one of its worst periods between February 11, 2011 and February 22, 2011 when shares fell for seven-straight days, falling 4% (-$2.26) over that span. Shares are up $17.52 (+33.9%) year to date.

(Source: Xignite Financials)

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