Watson Pharmaceuticals (NYSE: WPI ) reported earnings on July 26. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended June 30 (Q2), Watson Pharmaceuticals met expectations on revenues and beat slightly on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share dropped to a loss.
Gross margins increased, operating margins increased, net margins dropped.
Watson Pharmaceuticals recorded revenue of $1.36 billion. The 19 analysts polled by S&P Capital IQ hoped for revenue of $1.35 billion on the same basis. GAAP reported sales were 25% higher than the prior-year quarter's $1.08 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.42. The 22 earnings estimates compiled by S&P Capital IQ predicted $1.39 per share. GAAP EPS were -$0.49 for Q2 versus $0.42 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 44.4%, 90 basis points better than the prior-year quarter. Operating margin was 13.0%, 60 basis points better than the prior-year quarter. Net margin was -4.6%, 950 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.29 billion. On the bottom line, the average EPS estimate is $1.35.
Next year's average estimate for revenue is $5.53 billion. The average EPS estimate is $5.77.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 190 members out of 214 rating the stock outperform, and 24 members rating it underperform. Among 73 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 67 give Watson Pharmaceuticals a green thumbs-up, and six give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Watson Pharmaceuticals is outperform, with an average price target of $85.60.