) reported first quarter 2012 earnings of 86 cents per share, a
penny below the Zacks Consensus Estimate but at the upper end of
the guidance range of 84-86 cents per share.
While earnings increased 11.7% from the year-ago quarter,
revenues increased 9.5% to $1,391.9 million. Revenues exceeded the
Zacks Consensus Estimate of $1,380 million.
The Quarter in Details
Specialty pharmaceuticals sales increased 10.8% to $1,139.5
million, with eye care pharmaceutical sales increasing 10.2%.
Products like Lumigan (up 5.6%) and Restasis (up 15.5%) helped
drive eye-care sales.
Alphagan and Combigan franchise sales increased 11.9% to $112.2
million in the reported quarter. Latisse contributed $23 million to
first quarter sales, down 8.9% from the year-ago figure. Sanctura
franchise revenues fell 6% to $12.5 million.
Botox sales increased 9.4% year over year to $398.9 million.
Meanwhile, Allergan's medical devices segment posted sales of
$226.2 million, up 0.8%. While breast aesthetics sales increased
17% to $98.4 million, facial aesthetics sales decreased 5% to $83.8
million. The obesity intervention segment continued to disappoint,
with sales declining 15.5% to $44 million.
Selling, general and administrative (SG&A) expenses
increased 7.6% during the quarter to $574.5 million. Research and
development (R&D) expenses amounted to $224.8 million, up
2012 Guidance Reiterated
Allergan reiterated the guidance provided during the release of
fourth quarter 2011 results. The company expects 2012 earnings to
range from $4.13- $4.19 per share. The Zacks Consensus Estimate of
$4.18 is towards the higher end of the company's guidance range.
Allergan expects product net sales to range from $5,650- $5,850
For 2012, Allergan expects total specialty pharmaceuticals net
sales to increase to $4,710 million - $4,870 million. Sales should
be driven by Botox (guidance: $1,750 million - $1,800 million),
Lumigan franchise (guidance: $640 million - $670 million) and
Restasis (guidance: $740 million - $770 million).
Medical devices net sales are expected in the range of $940
million - $980 million in 2012. Here, performance will be driven
mainly by breast aesthetics (guidance: $360 million - $380 million)
and facial aesthetics (guidance: $410 million - $430 million).
Obesity intervention sales are expected to decline in 2012 to
approximately $170 million.
2Q12 Guidance Slightly Below Expectations
Allergan also provided guidance for the second quarter of 2012.
The company expects to earn $1.04 - $1.06 per share on total
product net sales of $1,450 million - $1,500 million. The Zacks
Consensus Estimate currently stands above the guidance range at
Allergan declared a first quarter 2012 dividend of 5 cents per
We currently have a Neutral recommendation on Allergan, which is
supported by a Zacks #3 Rank (short-term Hold rating).
ALLERGAN INC (AGN): Free Stock Analysis Report
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