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Market: NYSE
Sector: Pharmaceuticals
EPIC: WPI
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Watson Pharmaceuticals
www.watson.com
Watson Pharmaceuticals, Inc. (Watson) is an integrated global pharmaceutical company engaged in the development, manufacturing, marketing, sale and distribution of generic and brand pharmaceutical products. The Company operates in three segments: Global Generics, Global Brands and Distribution. It operates in international markets, including Western Europe, Canada, Australasia, Asia, South America and South Africa with its commercial market being the United States of America.
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Watson Pharmaceuticals Q1 profit beats, sales rise

30th Apr 2012, 11:57 am by Brad Lemaire
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.

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