Bloomberg News

Watson Shares Fall After Earnings Miss, Downgrades

February 28, 2007

The shares of Watson Pharmaceuticals Inc. (WPI:US) fell 6.1 percent, the biggest drop in almost four months, after the company's earnings missed estimates and an analyst downgraded the stock.

The shares fell by $1.71 to $26.36 at 4:31 p.m. in New York Stock Exchange composite trading. The decline is the biggest since shares fell 6.4 percent on Nov. 8, after a previous earnings report.

Roth Capital Partners cut the stock to ``hold'' from ``buy'' after the company, the biggest U.S. maker of generic drugs, issued its earnings report. Wachovia Capital Markets LLC lowered its earnings forecast for the company this year to $1.21 a share from $1.49, citing lower distribution revenue and higher expenses.

Watson, based in Corona, California, yesterday reported fourth-quarter earnings of 25 cents a share, excluding special items, compared with the 29 cent average in a Bloomberg survey of 15 analysts.

To contact the reporter on this story: Robert Greene in Washington at rgreene2@bloomberg.net.

To contact the editor responsible for this story: Robert Simison at rsimison@bloomberg.net.


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