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Here are highlights from Monday's Analyst Blog:

Forest Labs Hold Reiterated

Forest Laboratories Inc (NYSE: FRX) turned in a very solid fiscal 2008. While 3rd quarter revenue was below our forecast, EPS was significantly better due to stronger operating margins as a result of better-than-expected gross margins and lower R&D and SG&A expenses. Revenue came in about $11 million shy of our expectations due to lower than forecast sales of Lexapro. We expect Lexapro sales to show a modest improvement now with the adolescent indication added to the label.

Management's guidance for the full fiscal year remains below results in 2008, but has been revised upwards for the 3rd time. Forest now expects full-year adjusted EPS in the range of $3.35 - $3.45. The guidance reflects lower R&D expenses in the current quarter relative to previous expectations.

GM: The "Change" That Is Needed

Over the weekend, the administration forced General Motors Corp (NYSE: GM) CEO Rick Wagoner to resign (the CEO was "anti-bankruptcy"), and gave GM 60 days to put a viable restructuring program in place. Bondholders must share more of the burden, and a "structured" bankruptcy could occur. The government will provide funds to GM in the interim period, and funds are being set aside to back up warranties.

GM's presented "plan" would not make the company viable even if the economy recovered. Lately, 7,500 more employees have accepted buyouts.

DryShips Estimate Slashed

On March 24, 2009, DryShips Inc (NASDAQ: DRYS) reported 2008 fourth quarter results. DRYS posted diluted EPS before nonrecurring items of $0.25, down 94% year over year. This was below consensus of $0.66 and our $1.69 estimate, as revenues came in well below expectations.

Revenues decreased 9% year over year to $205 million as compared to $224 million for the same period in 2007, largely due to a 49% drop in TCE (time charter equivalent) rates, partly offset by a 3% increase in voyage days to 5,410 days.