Allergan Meets on the Top Line, Misses Where it Counts

Seth Jayson, The Motley Fool
Updated

Allergan (NYS: AGN) reported earnings on Feb. 5. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended Dec. 31 (Q4), Allergan met expectations on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue expanded and GAAP earnings per share expanded significantly.


Margins grew across the board.

Revenue details
 Allergan reported revenue of $1.51 billion. The 23 analysts polled by S&P Capital IQ expected to see revenue of $1.51 billion on the same basis. GAAP reported sales were 7.6% higher than the prior-year quarter's $1.40 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
 EPS came in at $1.15. The 26 earnings estimates compiled by S&P Capital IQ anticipated $1.18 per share. GAAP EPS of $1.06 for Q4 were 18% higher than the prior-year quarter's $0.90 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
 For the quarter, gross margin was 87.5%, 50 basis points better than the prior-year quarter. Operating margin was 32.4%, 240 basis points better than the prior-year quarter. Net margin was 21.5%, 150 basis points better than the prior-year quarter.

Looking ahead
 Next quarter's average estimate for revenue is $1.48 billion. On the bottom line, the average EPS estimate is $1.04.

Next year's average estimate for revenue is $6.28 billion. The average EPS estimate is $4.74.

Investor sentiment
 The stock has a three-star rating (out of five) at Motley Fool CAPS, with 413 members out of 437 rating the stock outperform, and 24 members rating it underperform. Among 129 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 125 give Allergan a green thumbs-up, and four give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Allergan is outperform, with an average price target of $100.81.

The article Allergan Meets on the Top Line, Misses Where it Counts originally appeared on Fool.com.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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