The 10-second takeaway
For the quarter ended March 31 (Q1), Allergan met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share grew significantly.
Margins improved across the board.
Allergan reported revenue of $1.39 billion. The 20 analysts polled by S&P Capital IQ expected to see a top line of $1.38 billion on the same basis. GAAP reported sales were 9.5% higher than the prior-year quarter's $1.27 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 $0.86. The 23 earnings estimates compiled by S&P Capital IQ predicted $0.87 per share. GAAP EPS of $0.74 for Q1 were 45% higher than the prior-year quarter's $0.51 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 85.9%, 30 basis points better than the prior-year quarter. Operating margin was 25.5%, 400 basis points better than the prior-year quarter. Net margin was 16.5%, 400 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.51 billion. On the bottom line, the average EPS estimate is $1.09.
Next year's average estimate for revenue is $5.86 billion. The average EPS estimate is $4.19.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 401 members out of 424 rating the stock outperform, and 23 members rating it underperform. Among 112 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 110 give Allergan a green thumbs-up, and two 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 $99.73.
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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.