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Obagi to Release Fourth Quarter 2009 Earnings

|Includes:Obagi Medical Products, Inc. (OMPI)

On March 11th, after the markets close, Obagi will release their 2009 fourth quarter earnings.

The consensus estimate is $0.17 a share, this is also the mean estimate and the high estimate, according to their investor relations page. The low estimate is $0.16/share, so its a pretty tight grouping.

This represents a 21% gain over their previous quarter, when they earned $0.14/share.

The question remains whether or not this type of growth is feasible, and while 21% seems like a large bump, it actually works out to be only about $700,000 in net earnings.

The company has posted earnings of $0.15/share in one quarter of 2008, so hitting their mark now doesn't seem unfathomable.

Over the long term Obagi is pursuing a limited developments strategy, spending just over $1M on R&D in the recent quarter; this means they're expecting their existing line of products to carry them forward through additional phases of growth.

No new news on pending litigation with Dr. Obagi, who is suing in California based upon his belief that Obagi restricted the ability of his new company to prosper; this litigation will center around the court's interpretation of non-compete clauses signed by Dr. Obagi, and the results are unknown at this time.

Disclosure: Long Obagi

Stocks: OMPI