S&P 500 (NYSE:SPY) component Allergan (NYSE:AGN) will unveil its latest earnings on Wednesday, August 1, 2012. Allergan is a global specialty health care company. It discovers, develops, and commercializes innovative pharmaceuticals, biologics, and medical devices, as well as over-the-counter products.
Allergan Earnings Preview Cheat Sheet
Wall St. Earnings Expectations: The average estimate of analysts is for net income of $1.06 per share, a rise of 10.4% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from $1.08. Between one and three months ago, the average estimate moved down. It has been unchanged at $1.06 during the last month. Analysts are projecting profit to rise by 14.2% compared to last year’s $4.17.
Past Earnings Performance: The company fell short of estimates last quarter after being in line with forecasts the quarter prior. In the first quarter, it reported profit of 86 cents per share versus a mean estimate of 87 cents. Two quarters ago, it reported net income of $1 per share.
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A Look Back: In the first quarter, profit rose 45.2% to $229.8 million (74 cents a share) from $158.3 million (51 cents a share) the year earlier, but fell short analyst expectations. Revenue rose 9.5% to $1.39 billion from $1.27 billion.
Stock Price Performance: Between May 1, 2012 and July 26, 2012, the stock price fell $11.26 (-11.7%), from $96.39 to $85.13. The stock price saw one of its best stretches over the last year between October 7, 2011 and October 14, 2011, when shares rose for six straight days, increasing 5.8% (+$4.71) over that span. It saw one of its worst periods between July 17, 2012 and July 25, 2012 when shares fell for seven straight days, dropping 7.2% (-$6.51) over that span.
Wall St. Revenue Expectations: On average, analysts predict $1.5 billion in revenue this quarter, a rise of 5.6% from the year-ago quarter. Analysts are forecasting total revenue of $5.86 billion for the year, a rise of 8.1% from last year’s revenue of $5.42 billion.
On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 13.6% in the second quarter of the last fiscal year, 9.9% in the third quarter of the last fiscal year and 7.1% in the fourth quarter of the last fiscal year before increasing again in the first quarter.
Analyst Ratings: With 14 analysts rating the stock a buy, one rating it a sell and eight rating the stock a hold, there are indications of a bullish stance by analysts.
Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 4.38 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands. The company improved this liquidity measure from 4.24 in the fourth quarter of the last fiscal year to the last quarter driven in part by an increase in current assets. Current assets increased 4.7% to $4.24 billion while liabilities rose by 1.4% to $968.8 million.
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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)
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