Earnings Beat for Allergan - Analyst Blog


Allergan, Inc. ( AGN ) reported fourth quarter 2011 earnings of $1.00 per share, a penny above the Zacks Consensus Estimate and above the guidance range of 97-99 cents per share. While earnings increased 13.6% from the year-ago quarter, revenues increased 7.1% to $1,402.3 million. Revenues missed the Zacks Consensus Estimate of $1,408 million.

Fiscal 2011 earnings increased 15.5% from the year-ago period to $3.65 per share. Full year earnings were a penny above the Zacks Consensus Estimate and above the company's guidance range of $3.62-$3.64 per share. Revenues for the year increased 11.0% to $5,419.1 million, in line with the Zacks Consensus Estimate.

The Quarter in Details

Specialty pharmaceuticals sales increased 8.9% to $1,158.6 million, with eye care pharmaceutical sales increasing 9.2%. Products like Lumigan and Restasis helped drive eyecare sales.

Alphagan and Combigan franchise sales increased 6.6% to $110.2 million in the reported quarter. Latisse contributed $24.6 million to fourth quarter sales, up 41.1% from the year-ago figure.

Botox sales increased 7.5% year over year to $415.3 million. Recent approvals for indications like chronic migraine and urinary continence in adults with neurological conditions helped Botox sales.

Meanwhile, Allergan's medical devices segment posted sales of $224.2 million, down 1.0%. While breast aesthetics sales increased 2.0% to $86.4 million, facial aesthetics sales increased 12.4% to $90.9 million.

However, the obesity intervention segment continued to disappoint, with sales declining 23.0% to $46.9 million.

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.

Other Details

Selling, general and administrative (SG&A) expenses increased 4.5% during the quarter to $539.6 million. Research and development (R&D) expenses amounted to $226.2 million, up 12.9%.

2012 Guidance Slightly Below Expectations

Allergan expects 2012 earnings to range from $4.13- $4.19 per share. The Zacks Consensus Estimate of $4.20 is marginally above the company's guidance range. Allergan expects product net sales to range from $5,650- $5,850 million.

Allergan also provided guidance for the first quarter of 2012, which was well below expectations. The company expects to earn 84 - 86 cents ontotal product net sales of $1,340 million - $1,390 million. The Zacks Consensus Estimate currently stands well above the guidance range at 91 cents.

Allergan declared a fourth quarter 2011 dividend of 5 cents per share.


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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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

This article appears in: Investing , Business , Stocks

Referenced Stocks: AGN



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