Warner-Lambert 3rd-Qtr Profit Seen at 34C/Shr: Earnings Outlook
Bloomberg News
October 15, 1998, 6:26 p.m. ET
Expected Earnings
Warner-Lambert Co.'s third-quarter earnings are expected to
rise to 34 cents a share from 24 cents a share, adjusted for a
three-for-one stock split, based on the average estimate of
analysts surveyed by First Call Corp.
Time
Morris Plains, New Jersey-based Warner-Lambert plans to
release its earnings Monday morning.
Behind the Numbers
Sales of two drugs, the cholesterol reducer Lipitor and
diabetes pill Rezulin, are boosting Warner-Lambert's profit.
Warner-Lambert introduced both of these drugs in 1997. Lipitor
has been taking sales from Merck & Co.'s Zocor.
Warner-Lambert had some setbacks in the third quarter. Its
prostate cancer drug Metaret failed Sept. 1 to win the backing of
a U.S. Food and Drug Administration advisory panel. In July,
Warner-Lambert said its diabetes drug Rezulin will carry new
warnings about the risk of liver damage in a label agreed upon by
the company and FDA. The new warnings mark the third time
Rezulin's label has been strengthened since Warner-Lambert
introduced the drug in 1997.
What the Experts Say
''Lipitor and Rezulin, it's still those two horses that are
driving the stock,'' said Erik Anderson, a portfolio manager with
Sit Investment, which holds about 577,000 Warner-Lambert shares.
Previous Market Reaction
Warner-Lambert rose 3 9/16 to 83 1/8 on July 20 after
reporting a 46 percent increase in second-quarter earnings.
Market Performance
Morris Plains, New Jersey-based Warner-Lambert rose 62
percent in the past year to 76. In the same period, the Standard
& Poor's Health Care Diversified Index rose 34 percent and the
Standard & Poor's 500 Index rose 8.5 percent.
--Kerry Dooley in the Princeton newsroom (609) 279-4016 /mfr |
