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

The 10-second takeaway
For the quarter ended June 30 (Q1), Forest Laboratories met expectations on revenues and missed estimates on earnings per share.

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

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

Revenue details
Forest Laboratories recorded revenue of $821.1 million. The 22 analysts polled by S&P Capital IQ expected sales of $817.0 million on the same basis. GAAP reported sales were 28% lower than the prior-year quarter's $1.15 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 $0.21. The 19 earnings estimates compiled by S&P Capital IQ forecast $0.24 per share. GAAP EPS of $0.21 for Q1 were 77% lower than the prior-year quarter's $0.90 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 79.5%, 160 basis points better than the prior-year quarter. Operating margin was 9.2%, 2,050 basis points worse than the prior-year quarter. Net margin was 6.7%, 1,580 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $789.2 million. On the bottom line, the average EPS estimate is $0.05.

Next year's average estimate for revenue is $3.26 billion. The average EPS estimate is $0.73.

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 $36.41.

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