Watson Pharmaceuticals, Inc.
Watson Pharmaceutical Inc. (WPI - Snapshot Report), a generic and branded drug manufacturer, didn't disappoint when it reported third quarter results last week. The company easily surprised on Wall Street estimates by 18.37% and raised 2009 guidance.
Revenue rose 6% to a record $667.4 million. The quarter was led by sales of generic products which rose 15% to $395.2 million over the year ago period. Generics had several new products, including potassium-chloride extended-release capsules.
The company is bullish about the rest of 2009.
"Based on our first quarter results and our view for the remainder of the year, we are raising our outlook for 2009, a clear signal that we remain confident in the growth prospects of each of our divisions, and are optimistic that execution on our business plans will continue to generate increasing value for shareholders," said Paul Bisaro, President and CEO.
The company's new 2009 guidance calls for adjusted earnings per share between $2.40 and $2.52 which is up sharply from its prior February guidance of $2.18 to $2.28 per share.
Value Fundamentals
Watson Pharmaceutical is now a Zacks #2 Rank (buy) stock. It is trading at 12.9x forward earnings.
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