On May 1, Watson Pharmaceuticals
- Sales rose by 64.9%, backed by robust growth in generic and branded drugs. Generics are the most important segment, accounting for roughly two-thirds of revenue.
- For fiscal 2007, the company expects total net revenue to be $2.5 billion to $2.6 billion. Adjusted earnings per diluted share for 2007 are expected to be $1.20 to $1.30.
- Watson is highly regarded in Motley Fool CAPS, garnering a four-star rating.
(Figures in millions, except per-share data.)
Income Statement Highlights
|
Q1 2007 |
Q1 2006* |
Change |
|
|---|---|---|---|
|
Sales |
$671.6 |
$407.2 |
64.9% |
|
Net Profit |
$31.6 |
$25.2 |
25.6% |
|
EPS |
$0.29 |
$0.23 |
26.1% |
|
Diluted Shares |
116.6 |
116.5 |
0.1% |
Get back to basics with a look at the income statement.
Margin Checkup
|
Q1 2007 |
Q1 2006 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
36.8% |
42.4% |
(5.6) |
|
Operating Margin |
9.2% |
8.5% |
0.7 |
|
Net Margin |
4.7% |
6.2% |
(1.5) |
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets |
Q1 2007 |
Q1 2006 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$82.5 |
$727.9 |
(88.7%) |
|
Accounts Rec. |
$375.6 |
$269.8 |
39.2% |
|
Inventory |
$492.3 |
$300.8 |
63.7% |
|
Liabilities |
Q1 2007 |
Q1 2006 |
Change |
|---|---|---|---|
|
Accounts Payable |
No data |
No data |
No data |
|
Long-Term Debt |
$1,074.2 |
$603.8 |
77.9% |
The balance sheet reflects the company's health.
Cash Flow Highlights
|
Q1 2007 |
Q1 2006* |
Change |
|
|---|---|---|---|
|
Cash From Ops. |
$88.2 |
$135.7 |
(35.0%) |
|
Capital Expenditures |
$16.9 |
$9.8 |
73.0% |
|
Free Cash Flow |
$71.3 |
$125.9 |
(43.4%) |
Free cash flow is a Fool's best friend.
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Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean. This data has been provided by Netscribes. To provide feedback on this article, please click on the "feedback" button below.
