Forest Laboratories (NYSE: FRX) reported earnings on Oct. 16. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended Sep. 30 (Q2), Forest Laboratories met expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue contracted significantly and GAAP earnings per share shrank significantly.

Gross margins grew, operating margins shrank, net margins dropped.

Revenue details
 Forest Laboratories reported revenue of $760.6 million. The 23 analysts polled by S&P Capital IQ predicted a top line of $772.1 million on the same basis. GAAP reported sales were 35% lower than the prior-year quarter's $1.16 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
 EPS came in at $0.08. The 14 earnings estimates compiled by S&P Capital IQ forecast $0.01 per share. GAAP EPS of $0.08 for Q2 were 91% lower than the prior-year quarter's $0.91 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
 For the quarter, gross margin was 80.3%, 300 basis points better than the prior-year quarter. Operating margin was 4.4%, 2,260 basis points worse than the prior-year quarter. Net margin was 2.7%, 1,880 basis points worse than the prior-year quarter.

Looking ahead
 Next quarter's average estimate for revenue is $777.8 million. On the bottom line, the average EPS estimate is -$0.17.

Next year's average estimate for revenue is $3.19 billion. The average EPS estimate is $0.25.

Investor sentiment

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Forest Laboratories is hold, with an average price target of $36.71.