S&P 500 (NYSE:SPY) component Allergan Inc. (NYSE:AGN) reported its results for the third quarter. 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.
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Allergan Inc. Earnings Cheat Sheet
Results: Net income for the large-cap pharmaceutical fell to $249.4 million (82 cents per share) vs. $249.8 million (81 cents per share) a year earlier. This is a decline of 0.2% from the year-earlier quarter.
Revenue: Rose 6.4% to $1.41 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Allergan Inc. reported adjusted net income of $1.06 per share. By that measure, the company beat the mean estimate of $1.04 per share. It fell short of the average revenue estimate of $1.51 billion.
Quoting Management: “In the third quarter, Allergan again delivered solid earnings growth in spite of the strong U.S. Dollar relative to virtually all major currencies,” said David E.I. Pyott, Allergan’s Chairman of the Board, President and Chief Executive Officer. “In addition, we were pleased to mark the opening of our new R&D facility in New Jersey, as well as to announce the expansion of our relationship with Molecular Partners.”
Revenue has increased for four consecutive quarters. Revenue increased 5.2% to $1.49 billion in the second quarter. The figure rose 9.5% in the first quarter from the year earlier and climbed 7.1% in the fourth quarter of the last fiscal year from the year-ago quarter.
The company has beaten estiamtes for two quarters in a row. In the second quarter, it topped expectations with net income of $1.07 versus a mean estimate of net income of $1.06 per share.
Looking Forward: Analysts appear increasingly optimistic about the company’s results for the next quarter. The average estimate for the fourth quarter has moved up from $1.19 a share to $1.20 over the last ninety days. For the fiscal year, the average estimate has moved down from $4.17 a share to $4.16 over the last ninety days.
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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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