ended lower Tuesday after the company reported a decline in second-quarter earnings after factoring in a gain in the year-ago period.
The company earned $50.7 million, or 47 cents a share, down from $60 million, or 56 cents a share, in the prior-year quarter. Analysts were expecting 44 cents a share. Last year's results included a $32 million gain from a legal settlement.
Watson closed at $38.95, down 64 cents, on the
New York Stock Exchange
Revenue rose to $355.9 million from last year's $300.1 million. Sales from branded products increased 19% to $185.9 million, and sales from the generic division climbed to $161.3 million from $135 million in the prior-year quarter.
The company's investment in research and development totaled $25.7 million, up 30%, from $19.8 million last year.
For the third quarter ending Sept. 30, Watson projected sales of $350 million to $370 million. The company estimated a profit of 44 cents to 46 cents a share. Analysts are calling for 44 cents a share on revenue of $365.1 million.
For the full year ending Dec. 31, the company upped its revenue estimates to about $1.4 billion to $1.47 billion, with a full-year profit forecast of $1.80 to $1.85 a share. Analysts are looking for $1.81 a share on sales of $1.44 billion.