The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Allergan met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue improved and GAAP earnings per share increased.
Gross margins expanded, operating margins grew, net margins dropped.
Allergan booked revenue of $1.40 billion. The 21 analysts polled by S&P Capital IQ looked for revenue of $1.41 billion. Sales were 7.1% higher than the prior-year quarter's $1.31 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $1.00. The 25 earnings estimates compiled by S&P Capital IQ averaged $1.00 per share on the same basis. GAAP EPS of $0.90 for Q4 were 5.9% higher than the prior-year quarter's $0.85 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 87.0%, 100 basis points better than the prior-year quarter. Operating margin was 29.2%, 120 basis points better than the prior-year quarter. Net margin was 20.0%, 10 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.38 billion. On the bottom line, the average EPS estimate is $0.90.
Next year's average estimate for revenue is $5.89 billion. The average EPS estimate is $4.20.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 385 members out of 408 rating the stock outperform, and 23 members rating it underperform. Among 128 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 123 give Allergan a green thumbs-up, and five 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 $90.74.
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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 of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. 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.