Morgan Stanley Maintains 1Q:11E EPS On WCRX

Morgan Stanley is maintaining its 1Q11E EPS of $0.84 on shares of Warner Chilcott WCRX. “WCRX raised its 2011 EPS guidance following debt refinancing on 3/17,” Morgan Stanley writes. “It also stated in an 8-K on 3/9 that ‘2011 total revenue and cash net income will be relatively lower in [1Q] and ramp up over the course of 2011 based on…a number of factors, including the launch of…Atelvia and Lo Loestrin Fe.' “We are raising our 2011E EPS from $3.53 to $3.70, 2% above consensus' $3.63.” Morgan Stanley said that its quarterly EPS progression in ‘11 is $0.84, $0.91, $0.93, and $1.02. Warner Chilcott closed Monday at $24.02.