Forest Labs Surges on Strong Outlook

Forest Laboratories (FRX Quote) said Thursday evening that it expects to top Wall Street earnings estimates for the just-closed quarter due to strong drug sales.

The New York-based pharmaceutical firm projects earnings for its fiscal third quarter to exceed by 15% analysts' consensus estimate of 77 cents per share, as polled by Thomson Financial/First Call. In the fiscal third quarter last year, Forest earned 47 cents per share.

The company credits strong sales in its antidepressant franchise for the upside surprise. Forest is projecting sales of the antidepressant Celexa should reach $370 million in the quarter. Sales of the antidepressant Lexapro, launched in September, should total about $80 million in the quarter, the company said.

Forest will release actual fiscal third-quarter results and guidance for the remainder of its fiscal year on Jan. 16.

Forest shares closed Thursday up $1.78 to $100. In after-hours trading following the release of the bullish expectations, the company's stock surged $2 to $102.