Watson Pharmaceuticals Inc. (WPI) recently announced its preliminary results for the financial year 2011.
The company reported preliminary non-GAAP earnings of $4.75 – $4.77 per share, reflecting an increase of 39% over the year-ago figure and well above the Zacks Consensus Estimate of $4.62.
Sales from a generic version of Pfizer’s (PFE) cholesterol drug Lipitor contributed 64 cents to the earnings.
Watson Pharma reported preliminary revenues of $4.57 billion, up 28%. The figure is in line with the company’s forecast and the Zacks Consensus Estimate of $4.5 billion.
Watson Pharma records revenues under three heads – Global Generics, Global Brands and Distribution. The company said Global Generics revenue amounted to $3.36 billion, driven by the launch of generic versions of Lipitor and Johnson & Johnson’s (JNJ) attention-deficit hyperactivity disorder (ADHD) drug Concerta. The company’s modified-release and oral contraceptive franchises continued to perform well. Generics revenue was almost in-line with Watson Pharma’s guidance.
The company said that Global Brands revenues came in at $440 million, slightly below the company’s forecast of $445 million. The branded segment benefited from the growth of the Rapaflo, Gelnique, Crinone and Androderm franchises.
Distribution segment revenues were $776 million, in line with the company’s guidance. The segment continued to be affected by a lower number of new product launches by third-parties.
Outlook
For 2012, Watson Pharma expects to post earnings of $5.25 – $5.55 per share on revenues of about $5.3 billion. The 2012 Zacks Consensus Estimate for revenues is the same as the company, while the earnings estimate lies above the company’s range at $5.77 per share.
Watson Pharma expects to report Global Generics revenues in the range of $3.8 – $4.0 billion in 2012. Global Brand revenues are forecasted to be around $500 – $525 million and Distribution segment revenues are expected to lie between $850 and $900 million.
The company expects 2013 non-GAAP earnings to increase about 10% from 2012 levels.
JOHNSON & JOHNS (JNJ): Free Stock Analysis Report
PFIZER INC (PFE): Free Stock Analysis Report
WATSON PHARMA (WPI): Free Stock Analysis Report
To read this article on Zacks.com click here.
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.
Be the first to comment