The 10-second takeaway
For the quarter ended March 31 (Q1), Allergan beat slightly on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue grew. Non-GAAP earnings per share increased. GAAP earnings per share dropped significantly.
Gross margins expanded, operating margins dropped, net margins shrank.
Allergan reported revenue of $1.46 billion. The 20 analysts polled by S&P Capital IQ wanted to see revenue of $1.44 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $0.98. The 25 earnings estimates compiled by S&P Capital IQ predicted $0.97 per share. Non-GAAP EPS of $0.98 for Q1 were 14% higher than the prior-year quarter's $0.86 per share. GAAP EPS of $0.04 for Q1 were 95% lower than the prior-year quarter's $0.74 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 86.3%, 40 basis points better than the prior-year quarter. Operating margin was 25.7%, 50 basis points worse than the prior-year quarter. Net margin was 0.9%, much worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.57 billion. On the bottom line, the average EPS estimate is $1.22.
Next year's average estimate for revenue is $6.15 billion. The average EPS estimate is $4.76.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 414 members out of 439 rating the stock outperform, and 25 members rating it underperform. Among 118 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 115 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 $114.06.
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