Allergan Inc. Earnings Cheat Sheet: Margins Keep Growing, Net Income Climbs

S&P 500 (NYSE:SPY) component Allergan Inc. (NYSE:AGN) reported its results for the second 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.

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Allergan Earnings Cheat Sheet for the Second Quarter

Results: Net income for the drug manufacturer rose to $246.6 million (79 cents per share) vs. $240.1 million (78 cents per share) in the same quarter a year earlier. This marks a rise of 2.7% from the year earlier quarter.

Revenue: Rose 13.6% to $1.42 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: AGN reported adjusted net income of 96 cents per share. By that measure, the company beat the mean estimate of 95 cents per share. It beat the average revenue estimate of $1.34 billion.

Quoting Management: “During the second quarter, Allergan continued to deliver strong operating results,” said David E.I. Pyott, Allergan’s Chairman of the Board, President and Chief Executive Officer. “Sales growth was again based on a broad range of products and geographies, and continues to benefit from our product approvals in 2010.”

Key Stats:

Last quarter marked the fifth consecutive quarter of gross margins expanding as the company’s gross margin expanded 1.6 percentage points to 86.2% from the year earlier quarter. Over that span, margins have grown on average 1.4 percentage points per quarter on a year-over-year basis.

Revenue has risen the past four quarters. Revenue increased 10.1% to $1.27 billion in the first quarter. The figure rose 6.9% in the fourth quarter of the last fiscal year from the year earlier and climbed 5.9% in the third quarter of the last fiscal year from the year-ago quarter.

The company has now beaten estimates the last two quarters. In the first quarter, it topped expectations with net income of 77 cents versus a mean estimate of net income of 74 cents per share.

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).

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(Source: Xignite Financials)