Par Pharmaceutical Cos. (PRX) continues to climb as analysts raise estimates on another earnings surprise.
Company Description
Par Pharmaceutical makes generic drugs and other branded pharmaceuticals. Currently, the company has 4 trademarked drugs and numerous generics.
Revenue Doubles
The company’s third-quarter results, released Nov 6, showed revenue of $295 million, up from $149 million last year. This lead to net income of $26.3 million, exponentially higher than the $0.5 million at the same time last year.
Earnings per share came in at 77 cents, compared to just 1 penny last year. Analysts were looking for just 49 cents, making this the third consecutive earnings surprise.
Estimates Jump
The Zacks Consensus Estimate for full-year 2009 and 2010 both jumped on the news. Current year forecasts are averaging $2.46, up from $1.88.
last year the company reported earnings of just 5 cents, so the growth is exponential. However, estimates for next year are expected to fall off, to $1.60.
The Chart
Shares of PRX are a great value, at about 10 times forward earnings, despite the stock’s appreciation. The MACD continues on a bullish pattern and the current trend is sharply higher. Take a look at the chart below.
Bill Wilton is the Growth Stock Strategist for Zacks.com. He is also the Editor in charge of the market-beating Zacks Growth Trader serviceZacks Investment Research
