Watson Pharma's 4th-qtr 2010 EPS slumps 68%, despite 21% hike in revenues

US specialty and generic drugmaker Watson Pharmaceuticals (NYSE: WPI) yesterday reported net revenue of $952.7 million for the fourth quarter of 2010, up 21% year-on-year. On a non-GAAP basis, net income for the quarter 2010 was $116.5 million, or $0.93 per share, an increase of 23%.

However, GAAP earnings per share were $0.15, compared to $0.51 in the prior year period, a fall of 68% as a result of asset-sale losses, write-downs and higher interest expenses. Analysts, on average, expected Watson to report earnings of $0.93 a share on sales of $929 million.

For the full year 2010, net revenue increased 28% to $3.6 billion. Non-GAAP net income rose 22% to $425.4 million, or $3.42 per share, while GAAP EPS was $1.48, compared to $1.96 in 2009, and well below consensus analysts’ expectations of $3.42.