We expect Perrigo Company ( PRGO - Analyst Report ) to beat expectations when it releases its second quarter fiscal 2013 results before the opening bell on Feb 1, 2013. The company’s fiscal year ends on the last Saturday of June every year.

Why a Likely Positive Surprise?

Our proven model shows that Perrigo Company is likely to beat earnings because it has the right combination of two key ingredients.

Positive Zacks ESP (Expected Surprise Prediction): This is because the Most Accurate estimate stands at $1.33 while the Zacks Consensus Estimate is lower at $1.32 per share. This results in a difference of +0.76%.

Zacks Rank #3 (Hold): Note that stocks with Zacks Rank of #1, #2 and #3 have a significantly higher chance of beating earnings. The sell rated stocks (#4 and #5) should never be considered while going into an earnings announcement.

The combination of Perrigo Company’s Zacks Rank # 3 (Hold) and +0.76% ESP causes us to expect a positive earnings beat on Feb 1, 2013.

What is Driving the Better Than Expected Earnings?

Perrigo Company is expected to deliver a positive earnings surprise in the second quarter of fiscal 2013 driven by increased revenues.

This healthcare company has delivered positive earnings surprises consecutively over the last 4 quarters with an average beat of 6.00%. The impressive performance over the last few quarters is attributable to solid revenues, primarily due to impressive sales at the generic (Rx Pharmaceuticals) segment of Perrigo.

Newly launched products have also boosted revenues at Perrigo over the last few quarters. During the first quarter fiscal 2013 conference call, the company announced its intention to launch more than 60 new products in fiscal 2013, which could generate revenues of more than $190 million. The company intends to launch more than 1 new product per week in fiscal 2013.

Earlier in the month, Perrigo announced that it has launched over-the-counter (OTC) nicotine polacrilex mini lozenge, 2 mg (mint flavor) and 4 mg (mint flavor). The mint flavored mini lozenge can be compared to GlaxoSmithKline's ( GSK - Analyst Report ) Nicorette mini lozenge.

Other Stocks to Consider

Perrigo Company, which develops, manufactures and distributes OTC and generic prescription pharmaceuticals among others, is not the only company looking up this earnings season. We also see likely earnings beat coming from other players in the generic market.

Mylan Inc ( MYL - Analyst Report ) has Earnings ESP of +4.69% and carries a Zacks Rank #2 (Buy).

Actavis Inc ( ACT - Analyst Report ) has Earnings ESP of +3.92% and carries a Zacks Rank #3 (Hold).