Walmart's New Health Food Push: Is It Too Hard to Swallow?
Bonds Are a 'Safe' Investment: A Big Lie Gets Even Bigger
Bright and early this morning, Roche Group (OTC: RHHB) announced first-half earnings and upped its annual earnings goal, thanks to impressive sales of Tamiflu. Roche's first-half profit (it only reports earnings twice) dropped 29% to $3.8 billion as the company was hit by costs related to its purchase of Genentech. That said, Roche upped its earnings guidance and forecast double-digit core earnings growth in both 2009 and 2010 -- the earlier forecast called for earnings to stay at 2008 levels.
Roche said that sales at both its pharma and diagnostics departments should grow "well ahead" of the market in the coming year. This move surprised many analysts, who were looking for Roche to raise its 2009 guidance, but not to the extent that the company announced. The company announced that total production capacity for flu treatment Tamiflu will be expanded to 400 million packs annually by the start of 2010. Tamiflu sales rose more than 200% in the past year, thanks to the Swine Flu scare.
Roche has benefited from both the swine flu and the fact that consumers will normally continue to spend on health care during a recession. The sector is in decent shape, as many of its major players have topped the consensus estimates. The sector is not immune to competition, as new drugs and generic medicine could provide the biggest stumbling block. Should consumers turn to the cheaper offerings during tough economic times, Roche could see its profits slip a bit.
Goldman Earnings Sink After Buffett Dividend
Johnson & Johnson's Income Falls 23%
Burberry Shares Leap on Sales Update
