Forest Laboratories Earnings Preview: Analysts Expect Rising Revenue, Falling EPS
Forest Laboratories (NYSE: FRX) unveils its next round of earnings this Tuesday, October 18, 2011. Here's Benzinga's essential guide to Forest Laboratories' second quarter earnings report.
Earnings and Revenue:
Analysts are predicting an EPS reading of 98 cents/share and revenues of $1.16 billion. Forest Laboratories' latest numbers will no doubt be compared with the company's year-ago quarter, when it reported a profit of $1/share on revenues of $1.09 billion. We'll have to wait for Tuesday to see if Forest Laboratories reports a decline in EPS and a boost in revenue from the year-ago quarter, as analysts are predicting.
Here's how the company's reported EPS has stacked up against analyst estimates in the past:
| Quarter | Q1 | Q4 | Q3 | Q2 |
| EPS Estimate | $0.96 | $1.08 | $0.99 | $0.94 |
| EPS Actual | $1.04 | $1.12 | $1.34 | $1.00 |
Stock Performance:
Shares of Forest Laboratories were trading at $32.24 as of October 12, 2011. Shares are up 0.8% year to date. For a full 12 months, the return has risen by 16.1%. Given that these returns are generally positive, long-term shareholders are probably satisfied going into this earnings release.
- Long-term shareholders are already enjoying 12-month gains prior to the announcement
Average Stock Rating:
The average rating by analysts for Forest Laboratories is a Hold. The strength of this rating has declined slightly over the past three months.
Competitors:
Wondering how some of the other healthcare companies are doing? Here are a few of Forest Laboratories' peers in that sector.
- Abbott Laboratories (NYSE: ABT): Hold with a $1.12 recent quarter EPS
- AstraZeneca plc (ADR (NYSE: AZN): Hold with a $1.52 recent quarter EPS
- Impax Laboratories (NASDAQ: IPXL): Hold with a $0.19 recent quarter EPS
- Jazz Pharmaceuticals (JAZZ): Moderate Buy with a $0.75 recent quarter EPS
Forest Laboratories is in the medicine-drugs industry, which has experienced price/earnings growth of 1%.
Finally, a description of the company's main areas of operation: Forest Laboratories and its subsidiaries develop, manufacture and sell prescription drug products.
Take Action:
Now that you've gotten an advanced peak at Forest Laboratories' upcoming earnings numbers, keep an eye out for any surprises in the report and be ready to take action. Also, check back in with us after the announcement for a full recap and a guide to your next steps.
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