Two Big Earnings: Watson Pharmaceuticals & NYSE Euronext (NYSE:WPI, NYX)

Two Big Earnings: Watson Pharmaceuticals & NYSE Euronext (NYSE:WPI, NYX)

Watson Pharmaceuticals, Inc. (NYSE:WPI) shares climbed as the company reported a higher-than-estimated first-quarter earnings driven by strong revenue with additional support from new generic drugs and as its branded pharmaceuticals and distribution business.

The company posted net income of $54.8 million, or 43 cents a share, up from $44.8 million, or 36 cents a share. On an adjusted basis, the company earned $1.64, topping analysts’ view by 4 cents.

Revenue during the quarter soared 74% year-over-year to $1.52 billion, above analysts’ estimates of $1.49 billion. Revenue from Watson’s branded drugs rose 13% and distribution revenue climbed by two thirds.

For the year, the company raised the low end of its per-share earnings estimate by a nickel and now expects $5.55 to $5.80. Watson raised its revenue estimate by $100 million to $5.5 billion.

Last week, the company agreed to buy Swiss rival Actavis for EUR4.5 billion ($5.94 billion) is set to boost the U.S.-based group in the global rankings of generic drug makers to No. 3.

Shares of WPI are up 2.74% to $78.25 in pre-market trading.

NYSE Euronext (NYSE:NYX) reported a sharp decline in its first quarter profit due to tough economic conditions.

The company earned $87 million, down 44% from a year ago profit of $155 million. Operating earnings per share were 47 cents, missing analysts’ expectation of 48 cents a share.

Revenue during the quarter slid to $601 million from $679 million.

First-quarter net revenue from the exchange’s derivatives unit was $176 million, down 25% from a year earlier, including a $3 million hit from currency losses. The company attributed the revenue fall to lower trading volume and reduced pricing for individual equity options and index futures.

Revenue related to information services and technological solutions increased 4% in the first quarter to $121 million. The company, which collects fees in U.S. dollars, euros and pounds sterling, took a $2 million hit from currency fluctuations over the quarter.

The company declared a cash dividend of 30 cents a share for the second quarter.

Shares of NYX closed at $27.07 on Friday.