The 10-second takeaway
For the quarter ended June 30 (Q2), Allergan met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share grew significantly.
Margins expanded across the board.
Allergan reported revenue of $1.49 billion. The 21 analysts polled by S&P Capital IQ expected revenue of $1.50 billion on the same basis. GAAP reported sales were 5.2% higher than the prior-year quarter's $1.42 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.07. The 24 earnings estimates compiled by S&P Capital IQ predicted $1.06 per share. GAAP EPS of $0.96 for Q2 were 22% higher than the prior-year quarter's $0.79 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 86.5%, 30 basis points better than the prior-year quarter. Operating margin was 30.3%, 420 basis points better than the prior-year quarter. Net margin was 19.8%, 240 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.43 billion. On the bottom line, the average EPS estimate is $1.05.
Next year's average estimate for revenue is $5.82 billion.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 402 members out of 423 rating the stock outperform, and 21 members rating it underperform. Among 109 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 106 give Allergan a green thumbs-up, and three 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 $101.29.
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