Drug Stocks To Watch

Last quarter after reviewing some of the drug stocks, we mentioned Jim Cramer‘s opinion. He felt that big drug stocks could continue to go higher, because they are still trading at depressed price-to-earnings multiples with juicy dividend yields. “After years where the prospects for these companies kept deteriorating, they can finally look forward to a future that’s brighter than the recent past.”  Now three months later and prices on average a little higher we will review this quarter’s drug stocks earnings reports.

For more info on drug stocks earnings click here.

Earnings: Bank Stocks Earnings Review

This year the first quarter of the bank stocks earnings season rolled out in the middle of the Passover holiday with J. P. Morgan and Wells Fargo announcing during Passover and a large group of the most prominent Bank Stocks have announced their earnings in the past week. Overall first quarter Bank stocks earnings continue to filter in with over 25% of the capitalized weight of the S&P 500 reported already.
This week renewed worries over Europe’s debt crisis pulled down bank stocks. The losses came even after the country’s largest bank, JPMorgan Chase, reported a larger profit than Wall Street expected. New data out of Europe showed that banks in Spain were increasingly relying on the European Central Bank for funds. The news heightened concerns that Spain would need a bailout to keep its economy afloat, causing a decline in our markets. The trend that seems to define the present earnings releases is that for the most part financial bank stocks are beating analyst expectations. This trend is a positive sign both for the financial sector and for our economy as a whole.
Despite the earnings performance, many of the bank stocks have traded lower in the past week.  That may be, due to the fact that many analyst had recently lowered the first quarters estimates across the board causing the current bank stocks earnings trend to beat expectations. Another possible explanation for this week’s poor performance, may be, due to the first quarter of 2012 being a very profitable one for equity investors. U.S. equities, achieved double-digit gains. Specifically the financial sector showed a very strong performance with the PHLX  KBW  Bank Sector Index (BKX) (Click here for current quotes of index components) still up year to date 17.61%, an impressive four month return for those few investors brave enough to invest during the depths of the financial crisis.
Next week, on Wednesday after their two-day meeting investors will get the latest Fed interest rate announcement. In addition, Fed chief Ben Bernanke will hold a press conference following the announcement.
“In January, the Fed published the forecasts of FOMC members both for the economy and for short-term interest rates for the next few years. At the end of the first quarter, it appeared that they might upgrade these forecasts. Now, this seems less certain. Either way what the Fed publishes next week will be very significant for fixed income markets used to the support of a very dovish Fed,” said JP Morgan Funds chief market strategist David Kelly.
After hearing from many of the more popular bank stocks, we would like to review some of the more significant bank stocks and their stories.This information is not a recommendation and you should review the company’s earnings press release. We are only trying to collect and group together some of the more popular bank stocks, presenting a general view of the group’s earnings, which may give additional insight and understanding into bank stocks.
JP Morgan Chase (JPM) reported Bank stocks earnings of $1.31 per share, compared with $1.28 per share reported for the same period in the previous year. Analysts were expecting to report a profit of $1.18 per share.  Revenue for the quarter rose 6% on a year-over-year basis to $27.42 billion, compared with Street estimates of $24.68 billion.

Investment Banking Finally Improves…

JP Morgan’s investment banking division saw revenues under pressure over the second half of 2011 on weak global economic conditions. For now investment banking operations brought in $7.3 billion this quarter. While this is almost 70% more than last quarter, it is still a billion shy of the figure a year ago.
The improved volatility in global markets clearly helped trading operations, which contributed a healthy $6 billion to the top-line this quarter.
Wells Fargo (WFC) Bank Stocks Earnings came in at $0.75 per share on revenue of $21.64 billion, compared to analysts’ forecast of $0.72 per share on revenue of $20.5 billion.
Citigroup (C) Net for the first quarter was $1.11 per share, up 7% from a year ago. Revenue came in at $20.2 billion, a full percentage point better than the same period in 2011. Citi’s per-share figure came in ahead of forecasts of $1.00, but when including the $1.3 billion charge from the accounting adjustment for tightening credit spreads, the number actually dropped to 95 cents per share.
Like its peers, Citi also continues to release loan loss reserves. In the first quarter, the number amounted to a $2.2 billion reduction. One bright spot was a drop in loan losses, which fell 40 percent to $4.1 billion, suggesting that for consumers at least, the economy was becoming more solid.

Goldman Sachs (GS) Compared with the same quarter last year, net sales dipped 16% to $9.95 billion. Over the same period, net earnings declined 23% to $2.11 billion. The company’s earnings of $3.92 per share did beat the $3.55 consensus estimate by 10%.

Morgan Stanley (MS) Reported bank stocks earnings before the opening bell on Thursday. Investors seemed to like the report and bid the shares higher. Here’s a look at the actual numbers.  Last year at this time the company posted net income of $964 million or 50 cents per share. This quarter, they reported a loss of $78 million or $0.6. Adjusted net income came in at 77 cents per share which beat estimates of 45 cents per share, but the company failed to beat revenue estimates. Morgan Stanley was weak in terms of earnings growth, sales growth as well as return on equity.
Bank of America (BAC) Reported bank stocks earnings of $653 million, compared with a year-earlier profit of $2.05 billion. Per-share earnings fell to 3 cents from 17 cents a year ago. Total revenue declined 17% to $22.5 billion. However, those results include a $4.8 billion debt valuation adjustment, which does not reflect its actual financial performance.
Nonetheless, excluding the charge, revenue still declined 2.8%. However, net income rose to $5.5 billion from $3 billion a year ago. On a per-share basis and excluding the charge, BofA reported earnings of 31 cents per share, compared with the 12 cents estimated by analysts.
The bank’s capital position improved, with its Tier 1 capital ratio, a critical measure of a bank’s financial health, rising 2.05 percentage points to 13.37%. And profit was again helped by reduced provisions for loan losses as credit quality continued to improve.
Credit-loss provisions totaled $2.42 billion in the first quarter, compared with $3.81 billion a year earlier and $2.93 billion in the fourth quarter. Net charge-offs declined to $4.06 billion from $6.03 billion a year ago, and the charge-off ratio dropped to 1.8% from 2.6%. Total non-performing loans declined to $27.8 billion from $31.6 billion.
When looking at the earnings of the financial stocks as a group, one cannot ignore what seems to be taking hold. Most banks are showing a trend of lower charge offs and lower non performing loans. If this trend continues and strengthens it is a fair indication that the health of the bank stocks and the economy as a whole is improving.

To compare this to our previous report on the fourth quarter and year end bank stocks earnings Click Here.

For more information on Bank stocks click here.

3 Bank Stocks Announcing Earnings

Despite positive bank stocks earnings reports, many of the larger bank stocks have traded down in the past week. Obviously the banks stocks will always be the first to take it on the chin if and when we hear that the European economy is shaky as was the case in the past week. It may be also due to the fact taht the first quarter of 2012 was very profitable for equity investors, as U.S. equities, achieved double-digit gains. The financial sector in particular saw a very strong surge, so the recent declines may be interpreted as profit taking.
After hearing from many of the more popular bank stocks, we would like to review this week’s expected announcements from some of the smaller local bank stocks.This information is not a recommendation and you should review the company’s earnings report once released. We are only trying to highlight some of the more popular local bank stocks.
Hudson City Bancorp, Inc. (HCBK) –Wednesday, before bell: One of the larger local bank stocks, analysts are looking for EPS of $0.15 on revenue of $230.00M this compares to last year’s devastating loss of $1.13 The consensus range is from $0.14 – 0.16 and $233.90M – $243.25M for revenue. For the following quarter revenues are expected to stay in pace at $224.07 as well as earnings per share are expected at $0.15. This compares to the previous quarter loss of $0.73 and last year’s first quarter loss of $1.13.

 First Financial Bancorp. (FFBC)- Thursday, after the bell: One of the largerbank stocks, analysts are looking for EPS of $0.30 on revenue of $89.28M this compares to last year’s EPS of $.29. The consensus range is from $0.28 – 0.32 and $80.10M – $99.60M for revenue. For the following quarter revenues are expected to stay in pace at $89.38 as earnings per share are expected to rise to $0.31. This compares to the previous quarter gain of $0.31 and last year’s first quarter gain of $.29.

Provident Financial Services (PFS) – Friday, before bell: One of the local bank stocks, analysts are looking for EPS of $0.27 on revenue of $53.66M this compares to last year’s gain of $0.24. The consensus range is for $0.26 – $0.28, and $52.60M – $54.44M for revenue. For the following quarter revenues are expected to rise to $53.92M as well as earnings per share are expected at $0.28. This compares to the previous quarter gain of $0.26 and last year’s first quarter gain of $.24.

For more info on bank stocks click here

Can You Benefit From a SEP-IRA?

Most people may not realize how much they can benefit from setting aside money for their retirement. Chances are that you just received your w-2 form and 1099 and other tax related documents. As you go over your taxes, now is the time to figure out if you can benefit from creating a retirement plan.

We are going to make ourselves available to all our friends and clients
to help you take advantage of our retirement planning.
Please feel free to call us at 855-4-MY-BROKER (1.855.469.2765)

In this email we will discuss two more complex retirement plans utilized business. The SEP-IRA, and the SIMPLE IRA. These are quite popular business retirement vehicles. You may check our previous Blog where we covered the two most popular individuals IRA’s the traditional and Roth IRA’s.

What is a SEP-IRA?

A Simplified Employee Pension (SEP) is a retirement plan for a self-employed person or business owner with employees. It is known as a SEP-Employers can make pre-tax contributions to traditional IRAs that are set up for eligible employees and for themselves and for this reason it is called a SEP-IRA.

No matter what type of business you may have, the SEP-IRA is available to you.  Whether you are a sole proprietor, a partnership, or a corporation, this type of IRA may serve you well as it is simple and inexpensive to set up and maintain. It’s a separate retirement plan that you can have in addition to a traditional or Roth IRA, or another workplace plan if you work a job in addition to having your own business.

In a SEP-IRA only the employer can contribute.  Employees never contribute their own money. However, an employee or owner-employee is always 100% vested (has full ownership) in the funds and can put it into most mainstream investments, like CDs, money market funds, stocks, bonds, mutual funds, and exchange-traded funds.

SEP-IRA contributions are at the discretion of the employer, but generally cannot exceed 25% of an employee’s annual W-2 compensation or 20% of an owner’s net self-employment income, up to $49,000 for 2011 and up to $50,000 for 2012.

When it comes to taking money out of a SEP-IRA, the rules are generally the same as a traditional IRA. You can withdraw funds as early as age 59½ and as late as 70½ without incurring a penalty. You can roll over funds from a SEP-IRA into a traditional IRA or another type of qualified retirement plan tax free.

What is a SIMPLE IRA?

There is another retirement plan for small businesses with less than 100 employees called the Savings Incentive Match Plan for Employees (SIMPLE). This can be set up as either  a 401(k) or an IRA. This plan has less restrictions and paperwork than other types of workplace retirement plans, which makes it a great starter plan for small companies that want to minimize their administrative duties.

With a SIMPLE IRA, employees elect to make contributions on a pre-tax basis and employers must contribute a set amount of matching funds. For 2011 and 2012, a worker can contribute 100% of their compensation up to $11,500 or $14,000 if you are age 50 or older.

Employers must match SIMPLE IRA contributions on a dollar-for-dollar basis up to 3% of an employee’s compensation or make non elective contributions of 2% of each employee’s compensation. Employees are always 100% vested in employer contributions.

You can withdraw funds as early as age 59½ and as late as 70½ without incurring a penalty. Taking an early withdrawal within two years of participating in a SIMPLE IRA comes with a steep 25% penalty—after that it is reduced to 10%. After two years you can roll over funds from a SIMPLE IRA into a traditional IRA, Roth IRA, or another type of qualified retirement plan tax free.

Using one or a combination of tax-advantaged IRAs is a smart way to make your investment dollars go further and to make sure you will have a healthy nest egg to spend during retirement.

Another IRA

What is a Self-Directed IRA?

If you are interested in putting your retirement money into more nontraditional investments, you might consider a self-directed IRA. It allows individuals to make extremely diversified and sophisticated investments, such as real estate, mortgages, businesses, and precious metals. You are required to have a trustee or qualified custodian to oversee your transactions and handle the disbursement or collection of funds.

A self-directed IRA has the same basic rules as a traditional IRA; however, it has additional restrictions, especially when it comes to buying real estate. You cannot use assets in a self-directed IRA for personal benefit until you reach age 59½, without putting the tax-deferred status of the account in jeopardy.

After reviewing these retirement plans you may have a question or two about them, or you may feel a bit confused which one is the best for you. Please feel free to contact us at 855-4-MYBROKER (855.469.2765). We can help guide you to a better retirement, with a Individual Retirement Account.
Plan smart from the start

Call us at 885 4-MY-BROKER.

1-885-469-2765

Open a SEP-IRA today

To view our past articles please visit us at: Kensington.kenscap.com

Can you benefit from an IRA account?

Most people may not realize how much they can benefit from setting aside money for their IRA. As you have recently received your 1099 and other tax related documents you are most likely putting together a package and preparing to go over your financials with your accountant. Now is the time to figure out if you can benefit from contributing to an IRA.

We are going to make ourselves available to all our friends and clients to help you take advantage of this tax haven. Please feel free to call us at 855-4-MYBROKER (855.469.2765)

Did You Know that your IRA may be

• Penalty free for a qualifying first-time home purchase withdrawal, subject to a $10,000 lifetime limit
• Penalty-free withdrawal for higher education expenses of the taxpayer, spouse, children, or grandchildren

There are many types of tax-advantaged Individual Retirement Accounts (IRAs) that you can use to save for your future retirement. Some are for individuals and others can be used if you are self-employed or have a small business. In order for you to contribute to a IRA, you must have some amount of taxable earned income either from a job, business, alimony, or from your spouse if you file taxes jointly.

Many people are confused and consider an IRA contribution as an investment. An IRA is simply an account that gives your investments a tax advantage while they’re owned inside the account. In general, you can have more than one type of IRA, providing you do not exceed your yearly allowable contribution limits.

In this email we will discuss the two most popular IRA’s the Traditional and Roth. In our next email we will continue to discuss other types of IRA’s.

What is a Traditional IRA?

A regular or traditional IRA is the most popular type of IRA for individuals. If you have earned income and are younger than age 70½, you are eligible to contribute to a traditional IRA. For 2011 and 2012 you can contribute an amount equal to your taxable income up to $5,000 or up to $6,000 if you are age 50 or older.

The major advantage of a traditional IRA is that your contributions are tax-deductible, which means they reduce the amount of tax you have to pay. Here’s an example: If you contribute $4,000 to a traditional IRA and your average tax rate is 25%, you cut your tax bill by $1,000 ($4,000 x 0.25 = $1,000). This means right after making this contribution, $1000 stays in your pocket instead of having to give it to the tax man.

A traditional IRA doesn’t eliminate tax, but it allows you to defer it until you make withdrawals at some future date. You can begin taking distributions from a traditional IRA once you reach the official retirement age of 59½, and you must take minimum distributions after you turn 70½. In general, early withdrawals are subject to income tax plus a 10% penalty.

What is a Roth IRA?

A Roth IRA is the second type of IRA for an individual. Contributions are not tax deductible. In other words, you must pay tax on Roth contributions upfront, in the current year—but that is where your taxation ends. When you retire and take distributions they’re completely tax free. You will not owe a penny in tax for contributions or earnings that have accumulated over the years!

Additionally, there is no requirement to take minimum distributions at age 70½, as there is with a traditional IRA. The funds in a Roth IRA may sit idle forever, which makes it an efficient way to pass money to your heirs.

If you decide to take a withdrawal from a Roth IRA, you can tap your contributions at any time tax free. However, Money earned in the account is subject to income tax plus an additional 10% penalty if you are younger than age of 59½.

Just like with a traditional IRA, as long as you have earned income you can contribute up to $5,000 or up to $6,000 if you are age 50 or older. However, when your income exceeds annual limits for your tax filing status, you become ineligible to contribute to a Roth IRA.

With either type of IRA, you are in control of the account. You have the flexibility to choose from many different investments, such as bank CDs, money market funds, stocks, bonds, mutual funds, or exchange-traded funds (ETFs).

After reviewing the two types of IRA’s you may have a question or two about them, or you may feel a bit confused which one is the best for you. Please feel free to contact us at 855-4-MYBROKER (855.469.2765). We can help guide you to a better retirement, with a Individual Retirement Account.

Social Media and the Stock Market

Most articles about Social Media and The Stock Market have talked about the upcoming Facebook IPO or wrote about the Groupon IPO. Some have been trying to give their own take on who will be the next Facebook and who will secure the next great IPO. Our story will take another twist as we will try to explore the use of social media as a tool to analyze the stock market.

There are over 200,000,000 tweets a day. Where do they go? Is there a way to organize all social media chatter and use it to help investors find investment ideas?  What can we learn from all this social media chatter about a specific companies? By now, everyone knows that the news about the killing of Osama Bin Ladin was tweeted on Twitter way before it was officially carried over any news wire. There seems to be an amazing opportunity to capture this social media chatter, filter it for pertinent information, and format the data to glean new insights into companies and investments.

On twitter alone there are 250 million active users. Combining Facebook, Dig, Tumblr and other social media venues there are between 600-700 million very active users micro blogging posting over all these social media sites continuously. This new trend can be viewed as a new form of broadcasting. As a matter of fact, just last week, Comedian Steve Carell joined Twitter, amassing more than 75,000 followers in just a few hours.
Blog postings, forum messages, online surveys and tweets are so easy and quick to collate and analyze in comparison to roadside polls and telephone canvassing. Couple this to the fact that this mode of communication spreads to many listeners and that this delivery is becoming more influential than conventional channels, you then realize social media is definitely something that needs to be taken seriously.

Now think of it this way, one can amass all this social media data, filter all tweets, and categorize it correctly to be able to zero in on the underlying information gathered from social media. That would allow you to retrieve a gold mine of information about many companies. Let’s say you add a little depth to keyword search, not just doing a simple keyword search like Google, but actually crunching this data to analyze, track a signal and obtain the feeling behind the tweet. Suddenly this gigantic sea of noise can be transformed in to orderly information. You can verify if people feel good about a new product or a service a company initiated or not.

Let’s take the new Ipad for example. Following all the tweets and all the social media chatter about the Ipad one should be able to analyze if people are happy or not with the product. Maybe an unknown glitch was uncovered in the system and people start tweeting about it. Let’s say a certain drug has a negative side affect that has not been publicly addressed and someone starts blogging about it. Before long there are people following this story and commenting all over the web. That information would be invaluable to both the drug company and its investors.

This is really only a more sophisticated way of measuring sentiment similar to the Consumer Sentiment Survey, a monthly survey currently taken by the University of Michigan. The survey assesses consumer attitudes on the business climate, personal finance, and spending and forecasts changes in the national economy. It also gauges probable future spending behavior and level of optimism/pessimism. In a nutshell it gleans the sentiment of people to interpret future behavior. All these tweets can be a used in a similar manner to establish if something negative or positive is developing.
There are a few companies that are doing just that, using technology that can pick up track and analyze all the social media data. They are able to translate it for an investor and tell him if people are posting positive or negative tweets, or other broadcasts on companies allowing the investor to use this information and decide how he wants to play the stock. Below is a list of some of the companies that do this type of social media analysis and offer this data.

http://www.wallstreetbirds.com/

http://stocktwits.com/

http://www.stocial.com/

To connect to our company’s social media

Peter Lynch: Spotting the Green on Your Own Turf

Peter lynch investment strategy

Earnings: Pharmaceuticals in the news

Last Fridays jobless report showed employment in the USA topped forecasts and global manufacturing strengthened. U.S. stocks rose for the fifth straight week. The Labor Department figures showed payrolls increased by 243,000 in January, the most since April 2011. The report exceeded all forecasts as economists in a Bloomberg News survey called for an increase of 140,000 jobs. The unemployment rate dropped to 8.3 percent, the lowest since February 2009.

Since Jan. 27^th, one of the more popular index’s, the S&P 500 rose 2.2% to 1,344.90 completing the longest weekly rally since January 2011.  The Dow added 201.77 points, or 1.6% to 12,862.23 this week. For the year The S&P 500 is up 6.9%, making it the best annual start since 1987.

Since the European debt crisis which drove the index down 19 percent between April 29^th, and Oct. 3^rd, 2011, the S&P 500 has recovered. It is 1.4% away from surpassing its peak nine months ago and reaching its high since the June 2008 financial crisis and the ensuing stock market crash. This stock market rally was boosted by better than estimated economic data and corporate profits.

Two sectors with the largest gain are the Financial and Technology sectors. Financial companies in the S&P 500 climbed 4.2% as a group, the largest gain among 10 industries.  Technology companies increased 3.1%, the second- biggest increase in the benchmark measure.

After reviewing last week’s earnings reports we will follow up on those companies that announced their earnings to see how their actual reports compared to their expected results.  At first glance there seems to be little surprises as earnings came in more or less as expected. This information is not a recommendation, we are only trying to inform you of the street’s expectations for these companies. All the data provided here is from Yahoo Finance.

 Eli Lilly and Company (LLY) Earnings beat expectations of $0.81 and came in at $0.87 on revenue of $6.05B compared to analyst expectations of $5.90B. The company reconfirmed recently announced 2012 guidance.

Pfizer, Inc. (PFE) Earnings beat expectations of $0.47 and came in at $0.50 on revenue of $16.7b compared to analyst expectations of $16.57B.

The company’s chief executive officer Mr. Ian Read said that the company was moving ahead with plans to shed its animal health and nutrition businesses later this year. Catherine Arnold, an analyst at Credit Suisse, said that the strong fourth-quarter performance by Pfizer’s nutrition and animal health businesses should help the company’s plans to sell or spin them off.

http://www.ft.com/intl/cms/s/0/7106695a-4c0e-11e1-b1b5-00144feabdc0.html#axzz1lcZNftED

Allergan, Inc. (AGN) Announced earnings as expected. The company expects total product sales in 2012 of between $5.65 billion and $5.85 billion. It expects earnings, excluding one-time items, of between $4.13 and $4.19 a share.  This compares to annual revenue expectations of $5.43B. and earnings of $3.64.

Merck & Company, Inc. (MRK) Earnings beat expectations of $0.95 and came in slightly higher at $0.97 on revenue of $12.29 B. this was slightly lower than the expected $12. 48B.

JP Morgan analyst Chris Schott said the earnings beat was largely due to a lower tax rate and noted that company sales did not eclipse forecasts as they have over the past year.

Even so, Schott predicted in a research report that Merck earnings will grow by an average of 7% a year through 2017 and be in the industry’s top tier. This is despite the expected decline from Singulair,  a leading asthma drug whose U.S. patent lapses in August, as the company introduces new medicines.

Merck earnings- http://www.reuters.com/article/2012/02/02/us-merck-idUSTRE81110X20120202?type=companyNews

Astrazeneca PLC (AZN) Announced earnings as expected. Revenue of $8.66B beat slightly expectations of $8.59B.

AstraZeneca announced that it plans to cut 7,300 jobs. The Company also announced it planned to buy back $4.5 billion in shares in 2012.

Gilead Sciences, Inc. (GILD) Announced earnings of $0.97 below expectations of $1.05 on revenue of $2.18B.

Despite weak quarterly results the stock was up on news about their anti-hepatitis C treatment. This is attributed to Gilead’s recent purchase of Pharmaset Inc., whose cache of hepatitis treatment drugs Gilead coveted.  GILD suffered a hit right after the deal closed, due to its large price tag of nearly $11 billion.  Three months later, after conducting a four week, all-oral combination treatment using experimental pill GS-7977 and ribavirin all genotype-1 hep-C, patients appeared to be virus-free. While this is not yet proof of a cure, such results are clearly promising.

To view another article on earnings click here.

Pharma Earnings Update

Amgen Inc. (AMGN) – : Although a biotech not your typical pharmaceutical I am including it into our earnings review due to their popularity. It said it earned $1.04 billion, or $1.21 per share, down 6 percent from $1.1 billion, or $1.17 per share, and off $0.1 from analysts expectations of $1.22.  Revenue beat expectations by .5b they were $3.97 billion, up 3 percent from $3.84 billion in 2010′s fourth quarter.

Amgen announced its plans to buy cancer therapy developer Micromet Inc. for $1.16 billion in cash to boost its oncology pipeline. Founded in Germany and based in Rockville, Md., Micromet is developing an experimental antibody-based drug, blinatumomab. It’s currently in mid-stage testing to treat leukemia and in clinical development for the treatment of non-Hodgkin lymphoma.

The purchase is Amgen’s largest since it bought BioVex Group last year in a deal worth up to $1 billion, including milestone payments.

Gilead Sciences, Inc. (GILD) - Friday, before the bell: Another popular biotech not your typical pharmaceutical we will include  them into our earnings review due to their popularity. Analysts are looking for EPS of $1.05 on revenue of $2.18B this compares to last year’s gain of $0.95. The consensus range is for $1.00 – $1.13, and $2.15B – $2.23B for revenue. For the fiscal year 2011, revenues are expected to rise 5.4% to $8.38B from $7.95B for the previous year. Earnings per share are expected to increase to $3.93 compared to $3.69 for 2010.

Watson Pharmaceuticals, Inc. Co (WPI)– Tuesday Feb 14^th, before the bell: Analysts are looking for EPS of $1.75 on revenue of $1.54B. This compares to last year’s gain of $0.93. The consensus range is $1.60-$1.78 for EPS, and $1.43B-$1.62B for revenue. For the fiscal year 2011, revenues are expected to increase 28% to $4.58B from $3.57B for fiscal 2010. Earnings per share are expected to increase to $4.73 compared to $3.42 in the past year.

Recently earning expectations were raised from $1.62 as for 2012 revenues are expected to increase 17.20% to $5.36B and earnings are expected to be $5.59.

Teva Pharmaceutical Industries (TEVA) - Wednesday Feb. 15^th, before the bell: Analysts are looking for EPS of $1.58 on revenue of $5.64B this compares to last year’s gain of $1.25. The consensus range is for $1.53 – $1.62, and $5.30B – $5.81B for revenue. For the fiscal year 2011, revenues are expected to rise 13.9% to $18.35B from $16.12B for the previous year. Earnings per share are expected to increase to $4.97 compared to $4.54

As for 2012 revenues are expected to increase 19.30% to $21.89B and earnings are expected to be $5.60

Mylan Inc. (MYL) – Monday Feb 21^st, before the bell: Analysts are looking for EPS of $0.5 on revenue of $1.55B. This compares to last year’s gain of $0.45. The consensus range is $0.48-$0.53 for EPS, and $1.49B-$1.62B for revenue. For the fiscal year 2011, revenues are expected to increase 12.9% to $6.15B from $5.45B for fiscal 2010.  Earnings per share are expected to increase to $2.01 compared to $1.61 in the past year. MYL- Earnings

To view other earnings click here.

Big Pharma Announcing Earnings Next Week‏

It’s been a few years now that investors have shunned large pharmaceutical companies as many of the companies have lost or will lose their patent protection on some of their most successful and profitable drugs. From 2010 to 2014, it is estimated that roughly $90 billion worth of branded drugs are going to go generic, which gives people the opportunity to buy the cheaper version generic drug but limits the profits of lucrative brand names.

 According to a report by the IMS institute for Healthcare Informatics, average annual sales are expected to grow only 3% to 6%, reaching nearly $1.1 trillion by 2015. This trend however, reflects a slowdown seen during the previous five years where annual growth was 6.2%. In addition they are expecting to see an accelerating shift in spending towards generic drugs, where they expect them to rise to 39% of cumulative spending in 2015, up from 20 % in 2005.

As pharmaceutical stocks joined the recent market uptick and started to rally investors feel that the group has bottomed. According to Jim Cramer of Mad Money “this is as bad as it gets.” Big pharma stocks could continue to go higher, he said, because they are still trading at depressed price-to-earnings multiples with juicy dividend yields. “After years where the prospects for these companies kept deteriorating, they can finally look forward to a future that’s brighter than the recent past.”

Next week, we will be hearing from many of the more popular drug stocks, many of which are widely held. The following is a review of the earnings expectations. By looking at the group and comparing the companies within this group this should give you a deeper understanding of the particular companies. This information is not a recommendation, we are only trying to inform you of the street’s expectations for these companies. All the data provided here is from Yahoo Finance.

Bristol-Myers Squibb Company Co (BMY)- Thursday, before bell: Analysts are looking for EPS of $0.55 on revenue of $5.5B. This compares to last year’s gain of $0.47. The consensus range is $0.52 – $0.57 for EPS, and $5.37B – $5.67B for revenue. For the full year, revenues are expected to increase by 9.3% to just under $21.3 billion. Earnings per share are expected to increase to $2.30 compared to $2.16 in the past year.

 Amgen Inc. (AMGN)- Thursday, after the close: Although a biotech not your typical pharmaceutical I am including it into our review due to their popularity. Analysts are looking for EPS of $1.22 on revenue of $3.92B. This compares to last year’s gain of $1.17. The consensus range is $1.07 – $1.34 for EPS, and $3.83B-$4B for revenue. For the full year, revenues are expected to increase slightly to $15.5B. versus $15.05B for the previous year. Earnings per share are expected to increase to $5.33 compared to $5.21 in the past years earnings. Amgen has beat earnings estimates in each of the past four quarters.

Eli Lilly and Company (LLY) – Monday, before bell: Analysts are looking for EPS of $0.81 on revenue of $5.90B. This compares to last year’s gain of $1.11. The consensus range is $0.76-$83 for EPS, and $5.64B-$6.06B for revenue. During the past three months earnings were revised downwards. For the fiscal year 2011, revenues are expected to be $24.13B. versus $23.08B. for fiscal 2010. Earnings per share are expected to decline to $4.35 compared to $4.74 in the past year. Lilly will report its first quarter to include the loss of patent exclusivity for Zyprexa. The company recently predicted a bigger than expected drop in 2012 profit, partly as Zyprexa sales have declined more than anticipated especially in Europe.

Pfizer, Inc. (PFE) Monday, before bell: Analysts are looking for EPS of $0.47 on revenue of $16.57B. This compares to last year’s gain of $0.47. The consensus range is $0.43-$0.50 for EPS, and $15.9B-$17.18B for revenue. For the fiscal year 2011, revenues are expected to decline slightly to $67.22B. from $67.79 for fiscal 2010. Earnings per share are expected to increase slightly from $2.23 in the past year to $2.28. PFE has beat earnings estimates by small margins in each of the past three quarters.

Allergan, Inc. Common Stock (AGN) - Thursday, before bell:Analysts are looking for EPS of $1 on revenue of $1.41B. This compares to last year’s gain of $0.88. The consensus range is $0.98-$1.02 for EPS, and $1.36B-$1.43B for revenue. For the fiscal year 2011, revenues are expected to increase 11% to $5.43B. from $4.88B for fiscal 2010. Earnings per share are expected to increase to $3.64 compared to $3.16 in the past year.

Astrazeneca PLC Common Stock (AZN) – Thursday, before bell: Analysts are looking for a loss of $1.61 on revenue of $8.59B. This compares to last year’s gain of $1.39. The consensus range is for a loss of $1.54-$1.72, and $8.48B-$8.76B for revenue. For the fiscal year, revenues are expected to rise slightly to $33.53B. from $33.27B. for the previous year. Earnings per share are expected to increase nicely to $7.31 compared to $6.71 the past years earnings. However expectations for 2012 are supposed to decline for both earnings and revenues.

Merck & Company, Inc. (MRK) – Thursday, before the bell: Analysts are looking for EPS of $0.95 on revenue of $12.48 B. this compares to last year’s gain of $0.88. The consensus range is for $0.92 – $0.97, and $12.02M – $12.89B for revenue. For the fiscal year 2011, revenues are expected to rise slightly to $48.22B from $45.99B for the previous year. Earnings per share are expected to increase to $3.76 compared to $3.42 for 2010 earnings. Expectations for 2012 are supposed to decline slightly for both earnings and revenues. Merck Earnings

For a graphic comparison of 11 of the top global pharmaceutical companies CLICK HERE.
The graphic shows how the companies measure up. Are the companies with the biggest market caps also spending the most on R&D? Is there better value in the higher dividend yields or the largest revenue growth? Here you have the chance to analyze the data for yourself.

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