Needham & Company Maintains a 'Hold' on Forest Laboratories (FRX); Strength of Established Products Drives EPS Beat as New Launches Begin Gaining Traction

Needham & Company maintains a 'Hold' on Forest Laboratories (NYSE: FRX).

Needham analyst says, "FRX delivered solid FY3Q12 results that fell slightly short of our expectations but beat Street estimates on both top- and bottom-line. With the beat and the additional visibility in revenues and expenses for the remainder of FY2012 (ending March 2012), management raised FY2012 EPS guidance to $3.65 - $3.75 (from $3.60 - $3.70). We continue to believe that performance could encounter short-term pockets of numbers softness, given the large ramp-up in spending to support new launches and an increasing reliance on the newly launched products that have been tracking below early forecasts. While pipeline activities aren’t waning, it remains unclear pending additional biz dev activity if the upcoming patent-cliff events will be surmountable in the long-term." (Needham raises FY12 EPS estimate from $3.60 to $3.65 and FY13 from $1.16 to $1.26)

For an analyst ratings summary and ratings history on Forest Laboratories click here. For more ratings news on Forest Laboratories click here.

Shares of Forest Laboratories closed at $32.08 yesterday.

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