Allergan Earnings: Five Straight Quarters of Margin Expansion
S&P 500 (NYSE:SPY) component Allergan Inc. (NYSE:AGN) reported its results for the first quarter. Allergan, Inc. 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 Cheat Sheet for the First Quarter
Results: Net income for the drug manufacturer fell to $158.3 million (51 cents/share) vs. $167.9 million (55 cents/share) a year earlier. A decline of 5.7% from the year earlier quarter.
Revenue: Rose 10.1% to $1.27 billion YoY.
Actual vs. Wall St. Expectations: AGN reported adjusted net income of of 77 cents/share. By that measure, the company beat the mean estimate of 74 cents/share. Estimates ranged from 72 cents per share to 78 cents per share.
Quoting Management: “During the first quarter, Allergan delivered very strong growth in sales and operating results,” said David E.I. Pyott, Allergan’s Chairman of the Board, President and Chief Executive Officer. “Sales growth was based on a broad range of products and geographies, and was further boosted by the launches of products and indications approved in 2010, a record year for regulatory approvals, positioning us for strong growth in the medium term.”
Last quarter marked the fifth consecutive quarter of gross margins expanding as the company’s gross margin expanded 0.3 percentage point to 85.6% from the year earlier quarter. Over that span, margins have grown on average 1.9 percentage points per quarter on a year-over-year basis.
Over the last five quarters, revenue has increased 9.6% on average year over year. The biggest increase came in the first quarter of the last fiscal year, when revenue rose 14.6% from the year earlier quarter.
Competitors to Watch: Johnson & Johnson (NYSE:JNJ), Inspire Pharmaceuticals, Inc. (NASDAQ:ISPH), ISTA Pharmaceuticals, Inc. (NASDAQ:ISTA), Endo Pharmaceuticals (NASDAQ:ENDP), Medicis Pharmaceutical Corp. (NYSE:MRX), Akorn, Inc. (NASDAQ:AKRX), Novartis AG (NYSE:NVS), GlaxoSmithKline plc (NYSE:GSK), Merck & Co., Inc. (NYSE:MRK), and Hospira, Inc. (NYSE:HSP)
Stock Performance: Shares of AGN are trading at $79.80 as of May 4, 2011 at 11:20 AM ET, up 1.03% from the previous closing price of $78.98.