Watson Pharmaceuticals Inc.

Watson Pharmaceuticals, Inc. (WPI - Snapshot Report) has reported another earning surprise and analysts are raising estimates heading into the next announcement.

Company Description

Watson Pharmaceuticals, Inc. is a pharmaceutical company primarily engaged in the development, production, marketing and distribution of both branded and off-patent pharmaceutical products.

The company's branded pharmaceutical business operates primarily in three specialty areas: Dermatology, Women's Health and General Products.

Another Surprise

Watson announced fourth-quarter results on Feb 19 that included net revenue of $645 million. Revenue was up 3% or $19 million since last year.

Earnings per share came in at 53 cents, 3 cents higher than the consensus estimate. This was the third surprise in the past 4 quarters.

Paul Bisaro, President and Chief Executive Officer of Watson said, "We demonstrated strong performance in all our divisions, delivered on the aggressive goals and strategic initiatives we set at the outset of 2008, and continued to provide shareholder value while building our pipelines, efficiencies and momentum for 2009 and beyond."

Estimates Rising

Analysts have been raising full-year estimates over the past 2 months and are now projecting 11% growth for 2009 and 5% in 2010.

The consensus for 2009 is now $2.27, up from $2.08 a couple months ago. Estimates are averaging $2.38 for 2010, up from $2.19 in the past 60 days.

The Chart

Shares of Watson have been on a wild ride but have maintained long-term momentum. The stock could be ready to bounce of the trend line. Take a look below.