) 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
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
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.
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
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
We currently have a Neutral recommendation on Allergan, which is
supported by a Zacks #3 Rank (short-term Hold rating).
ALLERGAN INC (
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