Earnings Preview: Sepracor

Sepracor (SEPR) is expected to report Q2 earnings before market open Tuesday, July 29, with a conference call scheduled for 8:30 am ET.

Guidance

Analysts are looking for a profit of 23c on revenue of 303.55M. The consensus range for EPS is wide, 5c to 50c, with a revenue range of $269.59M to $326.32M, according to First Call.

Analyst Views

For Q1, the company reported EPS of 53c vs. consensus of 47c and Q1 revenue of $320.8M vs. consensus of $335.34M. Positive catalysts for this earnings quarter are Sepracor's niche business in chiral chemistry and pharmacology. Positive catalysts this quarter could come from sales growth in Brovana. The company's insomnia drug, Lunesta, is expected to show sales expansion in foreign markets and sales for its respiratory treatments are expected to have grown. Risks to this earnings period are the drug maker's limited amount of marketed products and slowing Lunesta trends in North America.

On June 19, UBS upgraded Sepracor citing valuation. The firm's target is $25. Am Tech reiterated its Buy rating following meeting with CFO. The meeting supported Am Tech's thesis that Sepracor's assets are undervalued and the firm believes their 2008 estimate of $1.82 is beatable.