Forest Laboratories Earnings Preview: Get Ahead of the Analysts

Forest Laboratories (NYSE:FRX) will report earnings before markets open on Tuesday, July 23rd. Forest Laboratories, Inc. develops, manufactures, and sells both branded and generic forms of ethical products which require a physician’s prescription. The Company also manufactures non-prescription pharmaceutical products sold over-the-counter, which are used for the treatment of a wide range of illnesses. Forest’s products are marketed in the United States and eastern Europe.

Here is your Cheat Sheet to Forest Laboratories Earnings:

Earnings Expectations: Analysts expect earnings of $0.08 per share on revenues of $797.67 million.

Analyst Trends:

Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.19 to a profit $0.14. For the current year, the average estimate is a profit of $0.88, which is worse than the estimate ninety days ago.

Earnings Trends:

Here’s how Forest Laboratories has been performing on an annual basis:

Fiscal Year 2009 2010 2011 2012 2013
Revenue ($) in millions 3,923 4,193 4,420 4,586 3,126
Diluted EPS ($) 2.52 2.25 3.59 3.57 -0.12

Next, our CHEAT SHEET investing framework asks us to drill down to the recent quarterly data:

Quarter Jun. 30, 2012 Sep. 30, 2012 Dec. 31, 2012 Mar. 31, 2013
Revenue ($) in millions 821.13 760.64 722.69 821.67
Diluted EPS ($) 0.21 0.08 -0.58 0.17

Past Performance:
Forest Laboratories has beat analyst estimates 3 times in the past four quarters. Shareholders could expect a boost if the company beats estimates.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)