(PRX) Par Pharmaceutical Cos. – Revenue Doubles – Earnings Estimates Jump

December 4th, 2009

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 service

Zacks Investment Research

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Read more on Drug Manufacturers - Major, Pharmaceutical Resources at Wikinvest

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