Forest Laboratories (NYSE: FRX) reported earnings on Jan. 17. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q3), Forest Laboratories beat expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue grew, and earnings per share dropped.

Gross margins improved, operating margins contracted, net margins shrank.

Revenue details
Forest Laboratories booked revenue of $1.2 billion. The 21 analysts polled by S&P Capital IQ looked for sales of $1.2 billion. Sales were 7.8% higher than the prior-year quarter's $1.1 billion

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
EPS came in at $1.04. The 28 earnings estimates compiled by S&P Capital IQ predicted $1.01 per share. GAAP EPS of $1.04 for Q3 were 6.3% lower than the prior-year quarter's $1.11 per share.

Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 78.2%, 40 basis points better than the prior-year quarter. Operating margin was 29.5%, 480 basis points worse than the prior-year quarter. Net margin was 23.1%, 560 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $1.0 billion. On the bottom line, the average EPS estimate is $0.71.

Next year's average estimate for revenue is $4.5 billion. The average EPS estimate is $3.66.

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 $35.52.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.