Needham & Company Maintains a 'Hold' on Warner Chilcott (WCRX); 3Q11 Results Fall Mostly In-Line with Consensus
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Price: $22.93 --0%
Rating Summary:
4 Buy, 8 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
4 Buy, 8 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Needham & Company maintains a 'Hold' on Warner Chilcott (NASDAQ: WCRX).
Needham analyst says, "While WCRX’s 3Q11 top-line results were dead on with consensus expectations, the company uncharacteristically failed to best consensus EPS expectations, an outcome that has occurred on only one other occasion in the prior 26 quarters. Short-term weakness likely reflects selling in response to the modest EPS miss this period combined with the absence of an upward boost in at least full-year bottom line expectations though we believe the growing realization that operating expense levels have been ratcheted down as far as possible thus�diminishing a key source of historical bottom-line upside is an equally likely culprit underlying today’s dip in shares and certainly will cap any significant upward movement from current levels. On the plus side, we would note that while key WCRX franchises remain in states of stagnation or decline, trends have stabilized lessening the risk of any nasty downside surprises. Our view on shares remains that growth through expense management has run its course and absent a demonstrated ability to reinvigorate declining revenue streams or deliver on a major product and/or company acquisition, WCRX shares will remain range bound."
For more ratings news on Warner Chilcott click here and for the rating history of Warner Chilcott click here.
Shares of Warner Chilcott closed at $17.01 yesterday.
Needham analyst says, "While WCRX’s 3Q11 top-line results were dead on with consensus expectations, the company uncharacteristically failed to best consensus EPS expectations, an outcome that has occurred on only one other occasion in the prior 26 quarters. Short-term weakness likely reflects selling in response to the modest EPS miss this period combined with the absence of an upward boost in at least full-year bottom line expectations though we believe the growing realization that operating expense levels have been ratcheted down as far as possible thus�diminishing a key source of historical bottom-line upside is an equally likely culprit underlying today’s dip in shares and certainly will cap any significant upward movement from current levels. On the plus side, we would note that while key WCRX franchises remain in states of stagnation or decline, trends have stabilized lessening the risk of any nasty downside surprises. Our view on shares remains that growth through expense management has run its course and absent a demonstrated ability to reinvigorate declining revenue streams or deliver on a major product and/or company acquisition, WCRX shares will remain range bound."
For more ratings news on Warner Chilcott click here and for the rating history of Warner Chilcott click here.
Shares of Warner Chilcott closed at $17.01 yesterday.
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