(By Balachander) Generic drug developer Watson Pharmaceuticals Inc. (NYSE: WPI) posted stronger-than-forecast quarterly earnings, spurred by double-digit revenue growth from product launches across its three businesses. The company raised its guidance for the full year.
On a non-GAAP basis, earnings per share jumped to $1.35 from $1.09, topping market expectations of $1.28. GAAP earnings increased 13 percent to $77 million.
Revenue grew 19 percent to $1.29 billion, ahead of consensus estimate of $1.27 billion for the third quarter. Global Generics revenue climbed 15 percent, Global Brands revenue rose 10 percent and revenue from distribution segment gained 44 percent.
Watson had in April agreed to buy peer Actavis for $5.6 billion to boost its European business.
Looking ahead for the full year 2012, the company now expects adjusted non-GAAP EPS in the range of $5.85 to $5.95 from prior view of $5.65 to $5.85. Revenue is now projected to be around $5.9 billion from $5.5 billion projected earlier. Analysts expect EPS of $5.80 on revenue of $5.54 billion.
For 2013, Watson expects non-GAAP EPS growth between 30 percent and 40 percent over the high-end of its estimated combined range for 2012.
The stock, which has been trading between $55.00 and $89.90 over the past year, ended Wednesday's regular trading at $85.95.