The 10-second takeaway
For the quarter ended March 31 (Q4), Forest Laboratories beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted and GAAP earnings per share dropped significantly.
Gross margins improved, operating margins contracted, net margins dropped.
Forest Laboratories reported revenue of $1.06 billion. The 24 analysts polled by S&P Capital IQ predicted revenue of $1.02 billion on the same basis. GAAP reported sales were 7.2% lower than the prior-year quarter's $1.13 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.78. The 27 earnings estimates compiled by S&P Capital IQ averaged $0.70 per share on the same basis. GAAP EPS of $0.72 for Q4 were 35% lower than the prior-year quarter's $1.11 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 79.3%, 30 basis points better than the prior-year quarter. Operating margin was 19.8%, 1,570 basis points worse than the prior-year quarter. Net margin was 18.4%, 1,010 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $828.0 million. On the bottom line, the average EPS estimate is $0.38.
Next year's average estimate for revenue is $3.32 billion.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Forest Laboratories is hold, with an average price target of $35.48.
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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.