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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Spekulatius who wrote (19407)	7/12/2004 11:34:02 AM
From: Paul Senior	Respond to of 78520

Buying a few shares of WPI today. A regression-to-mean play, I am betting.

To: Spekulatius who wrote (19407)	8/4/2004 12:08:09 AM
From: Spekulatius	Respond to of 78520

WPI with better than expected earnings - stock up some. Associated Press Watson's 2Q Profit Drops 31 Percent Tuesday August 3, 8:18 am ET Watson's 2Q Profit Drops 31 Percent on Declining Sales of Branded Drugs, Charges CORONA, Calif. (AP) -- Generic drugmaker Watson Pharmaceuticals Inc. posted a 31 percent drop in second-quarter profit, hurt by declining sales of branded drugs and higher research and development charges during the period, the company said Tuesday. ADVERTISEMENT Quarterly income fell to $34.9 million, or 32 cents per share, from $50.7 million, or 47 cents, in the year-ago period. Excluding a milestone payment of $6.4 million, or 6 cents, to Kissei Pharmaceutical Co. and a charge of $2.4 million, or 2 cents per share, from paying down debt, Watson's earnings would have come in on target with analyst estimates for earnings of 40 cents, according to Thomson First Call. Total revenue climbed 12 percent to $399.4 million from $355.9 million, lifted by new products introduced in its generic division, which grew 39 percent to $224.3 million, Watson said. Generic drug growth was offset by an 11 percent drop in brand division sales, falling to $165.8 million from lower wholesale and declining sales of Watson's pain products. The company increased its research and development costs by 65 percent to $42.5 million from $25.7 million during the quarter, from greater investment in its product pipeline, which includes the $6.4 million payment to Kissei, Watson said. Watson added that it currently has 80 drugs under development and 29 generic drug applications on file with the Food and Drug Administration. Watson said it expects third-quarter revenue of $390 million and earnings of 44 cents to 46 cents per share, excluding a projected after-tax charge of $6.4 million, or 6 cents per share, from previously disclosed organizational changes. Analysts put the company's income at 45 cents on revenue of $390 million, compared with last year's earnings of 47 cents on revenue of $359 million. Full-year earnings are anticipated in the range of $1.85 to $1.90, excluding one-time charges, on revenue of $1.6 billion. That compares with analyst estimates of $1.83 per share, and last year's earnings of $1.86 on revenue of $1.46 billion. Shares of Watson rose 1.3 percent, or 31 cents, to $25.01 during pre-market trading on the New York Stock Exchange.