With generic pharmaceuticals all the rage these days, it's only fitting that Eon Labs (NASDAQ:ELAB) would up the ante. Yesterday, shares of the generic drug maker jumped 8%, to $50.31, after raising its fourth-quarter and full-year guidance over the weekend.
Eon now expects fourth-quarter sales between $85 million and $90 million, up significantly from its previous $75 million to $80 million forecast. The company also expects fourth-quarter earnings at $0.05 higher than its previously expected, coming in at $0.38 to $0.41 per share. Similarly, full-year sales will be between $320 million and $325 million, with earnings of $1.51 to $1.54 per share.
Over the past year or so, we've given generic drug makers a lot of thought. For starters, check out Jeff Fischer's three-part series from last spring: Generic Drugs' High Potential, a discussion on Mylan Labs (NYSE:MYL), and Three Companies to Consider.
Among the issues we've covered of late, IVAX (NYSE:IVX) - a former TMF Select (now Hidden Gems) selection - has held true, including a new generic version of Neurontin -- Pfizer's (NYSE:PFE) $2.2 billion epilepsy drug -- and a Johnson & Johnson (NYSE:JNJ) drug. Israel-based Teva Pharmaceuticals (NASDAQ:TEVA) recently bolstered its position with its impending acquisition of Sicor (NASDAQ:SCRI), and even though Watson Pharmaceuticals (NYSE:WPI) recently tripped, its performance has otherwise been hot.
As for Eon itself, it has earned a reasonably rich price tag at about 29 times 2004 earnings. In current trends keep apace, future profits for the drug maker may be looking much more "high-end."
For more on generics, be sure to check out the Pharmaceuticals discussion board. Only at Fool.com. Jeff Hwang can be reached at [email protected].
