Watson Pharmaceuticals Q1 profit beats, sales rise
Watson Pharmaceuticals (NYSE:WPI) reported Monday fiscal first-quarter earnings grew as sales surged 74 percent, helped by generic drugs like Lipitor and higher overseas revenue.
Earnings were $54.8 million, or 43 cents per share for the latest period that ended March 31. This compares with $44.8 million, or 36 cents per share, in the same period last year.
Stripping out one-time items, the company earned $1.64 per share, compared to 89 cents per share a year earlier, topping the $1.60 analysts predicted.
Revenue jumped to $1.52 billion from $876 million in the first quarter a year ago, just beating Bloomberg analyst estimates for $1.50 billion in sales.
Watson’s global generics segment – which makes and sells generic drugs – recorded sales of $1.1 billion, up from from $600.1 million, driven by new products like Lipitor and higher sales overseas. But the unit’s margin eased to 35.7 percent from 37.7 percent a year earlier.
Revenue from the global brands unit reached $109.6 million up from $96.9 million, thanks to increased sales from the drugs Rapaflo and Crinone. Gross margins were down to 76.5 percent from 81.6 percent.
Its distribution segment saw sales of $298.6 million, compared with the year-prior $179.5 million. Gross margins slipped to 11.5 percent from 17.2 percent.
Looking ahead, the drug maker projected full-year 2012 revenue of about $5.5 billion, in line with the 22 analysts polled by Bloomberg.
For 2012, Watson foresees adjusted net income of between $5.55 and $5.80 per share, also in line with analyst forecasts.
Shares were down by 1.90 percent, falling to $74.71 apiece in trade on the New York Stock Exchange on Monday.