Watson 3Q profit falls 11 percent on taxes, costs
The Associated PressDrug developer Watson Pharmaceuticals Inc. said Wednesday its profit fell 11 percent in the third quarter as higher taxes and charges offset a revenue boost.
Watson said profit declined to $63 million, or 55 cents per share, from $71.1 million, or 62 cents per share, a year ago. Watson said it earned 66 cents per share, excluding impairment charges and other one-time costs.
Revenue rose 3 percent to $662.1 million from $640.7 million.
Analysts polled by Thomson Reuters expected profit of 65 cents per share on revenue of $688.5 million.
Revenue from Watson's generic drug business grew 9.4 percent to $398 million, while revenue from branded drugs rose 6 percent to $112.7 million. Distribution revenue fell 11 percent to $151.4 million.
Meanwhile, the company's income tax provision rose 71 percent to $39.3 million.
Looking ahead, the company expects adjusted profit between $2.50 and $2.58 per share for the full year, on revenue of about $2.7 billion. Analysts expect profit of $2.55 per share on revenue of $2.76 billion.
Shares of Watson fell 23 cents to $35.11 in morning trading.