Allergan
The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Allergan met expectations on revenues and beat slightly on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share grew.
Gross margins expanded, operating margins dropped, net margins contracted.
Revenue details
Allergan recorded revenue of $1.41 billion. The 23 analysts polled by S&P Capital IQ anticipated sales of $1.43 billion on the same basis. GAAP reported sales were 6.4% higher than the prior-year quarter's $1.33 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 $1.06. The 25 earnings estimates compiled by S&P Capital IQ anticipated $1.04 per share. GAAP EPS of $0.82 for Q3 were 1.2% higher than the prior-year quarter's $0.81 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 86.6%, 80 basis points better than the prior-year quarter. Operating margin was 25.3%, 100 basis points worse than the prior-year quarter. Net margin was 17.6%, 120 basis points worse than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $1.51 billion. On the bottom line, the average EPS estimate is $1.20.
Next year's average estimate for revenue is $5.82 billion. The average EPS estimate is $4.17.
Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 414 members out of 436 rating the stock outperform, and 22 members rating it underperform. Among 120 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 117 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 $100.98.
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