Allergan Fourth Quarter Earnings Sneak Peek
S&P 500 (NYSE:SPY) component Allergan (NYSE:AGN) will unveil its latest earnings on Tuesday, February 5, 2013. 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 profit of $1.19 per share, a rise of 19% from the company’s actual earnings for the same quarter a year ago. The average estimate is the same as three months ago. Between one and three months ago, the average estimate moved up. It has dropped from $1.20 during the last month. Analysts are projecting profit to rise by 14.5% versus last year to $4.18.
Past Earnings Performance: The company has beaten estimates the last two quarters and is coming off a quarter where it topped the forecasts by 2 cents, reporting net income of $1.06 per share against a mean estimate of profit of $1.04. In the second quarter, the company exceeded forecasts by one cent with net income of $1.07 versus a mean estimate of profit of $1.06.
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Stock Price Performance: Between November 1, 2012 and January 30, 2013, the stock price rose $14.82 (16.3%), from $90.78 to $105.60. The stock price saw one of its best stretches over the last year between December 28, 2012 and January 10, 2013, when shares rose for nine straight days, increasing 14.7% (+$13.25) 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: Analysts are projecting a rise of 7.9% in revenue from the year-earlier quarter to $1.51 billion.
Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 4.3 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 regressed in this liquidity measure from 4.42 in the second quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased 9.5% to $1.05 billion while assets rose 6.5% to $4.54 billion.
After last quarter’s profit drop broke a string of income increases, this earnings announcement is definitely a chance for a rebound. Net income rose 6.3% in the fourth quarter of the last fiscal year, 45.2% in the first quarter and 19.8% in the second quarter before declining in the third quarter.
On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 7.1% in the fourth quarter of the last fiscal year, 9.5% in the first quarter and 5.2% in the second quarter before increasing again in the third quarter.
Analyst Ratings: With 16 analysts rating the stock a buy, none rating it a sell and eight rating the stock a hold, there are indications of a bullish stance by analysts.
A Look Back: In the third quarter, profit fell 0.2% to $249.4 million (82 cents a share) from $249.8 million (81 cents a share) the year earlier, but exceeded analyst expectations. Revenue rose 6.4% to $1.41 billion from $1.33 billion.
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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)