Warner Chilcott Limited – Aggressive Growth – Zacks Rank Buy | Stock Market News & Stocks to Watch from StraightStocks

Warner Chilcott Limited – Aggressive Growth – Zacks Rank Buy

Source: http://www.zacks.com/commentary/9543/Warner+Chilcott+Limited+-+Aggressive+Growth+-+Zacks+Rank+Buy
Posted on Monday, December 22nd, 2008 | In Stocks to Watch

Contributed by: Zacks Market Commentaries (http://www.zacks.com/) -

Warner Chilcott Limited (WCRX) is raising guidance, amid economic turmoil, based an excellent quarterly results. Analysts are raising their forecasts and the stock was just added to a major index.

Company Description

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Warner Chilcott is a leading specialty pharmaceutical company focused on developing, manufacturing, marketing and selling branded prescription pharmaceutical products. The drugs are for women’s healthcare and dermatology in the United States.

The company prides itself in its proven product development capabilities, coupled with the ability to execute acquisitions and in-licensing transactions and develop partnerships.

Solid Quarterly Results

Warner Chilcott announced quarterly results on Nov 10 which included earnings per share of 16 cents, 8 times higher than the same quarter last year. Revenues rose 2.4% to $232 million on a year-over-year basis.

The strong numbers were driven by reduced operating costs and growth in several of its promoted products.

Updated Guidance

Warner Chilcott boosted earnings guidance following the excellent quarterly results. EPS for 2008 is now projected to be between $1.38 and $1.43, up 8 cents since August.

Analysts have since raised their estimates to the higher end of the forecast given by the company. The new consensus, $1.42, would represent 23.5% year-over-year growth.

In 2009 Wall Street is expecting earnings of $1.60 per share, 12.5% higher than 2008.

Added To a Major Index

On Dec 15 the company’s stock was added to the NASDAQ 100, which will go into effect today, Dec 22.

Roger Boissonneault, President and CEO said “Inclusion in this group marks another milestone for Warner Chilcott. Our shares our now associated with those of the most successful, dynamic and growing publicly traded companies.”

The Chart

Shares of WCRX have been fluctuating between $12 and $14 per share over the past few months. However the stock has mad a push to break out of the channel. If they can hold this level the resistance above $14 maybe become a support level. Take a look at the chart below.