Allergan revenue rises 4.4 pct; company expands buyback

The Allergan logo is seen in this

2015. REUTERS Thomas White Illustration File

The net loss from continuing operations, net of tax, narrowed to $380.1 million, or $1.15 per share, from $875 million, or $2.40, a year earlier. "Consensus estimates again appear too high to us, and we will reassess our position on this name after the November 2 earnings call and analyst event". Allergan reported a profit of $15.22 billion, or $38.58 a share, compared with a profit of $5.3 billion, or $13.29 a share, a year prior. US specialized therapeutics revenue grew 12% to $1.45 billion on growth in eye care, facial aesthetics and medical dermatology. (The Scale is from 1-5 where 1 means Strong Buy and 5 means Strong Sell). Net revenue rose to $3.62 billion from $3.47 billion in the third quarter ended September 30. However, lower Namenda IR and XR sales hurt the performance of the CNS franchise. The price to sales ratio is 17.

Our vendor, Zacks Investment Research, hasn't provided us with the upcoming earnings report date.

Sales in its USA general medicine segment fell 4.1% to $1.49 billion, as the Namenda IR Alzheimer's treatment lost exclusivity.

Established branded products also performed poorly overall, with net revenue falling 20% from the third quarter of 2015. The consensus for the stock implies significant deceleration in the company's earnings and revenue on both sequential and yearly basis. The analyst now models $14.45 billion in revenue, below 2016 guidance of $14.65 to $14.9 billion.

Despite these challenges, Allergan still grew total revenue thanks largely to solid growth from three of its top-selling products. It had previously projected 2016 revenues of $14.65 billion to $14.9 billion. The Cincinnati Ohio 45202 based company operating under the Grocery Stores industry has been trending down for the last 52 weeks, with the shares price now -13.61% down for the period and down by -22.24% so far this year. The average analyst estimate was $3.56, according to Thomson Reuters. Research and development costs increased as did selling and market costs. During the same quarter in the previous year, the company posted $3.48 EPS.

Shares fell 2.2% in morning trading to $203.95 as the company reported weaker-than-expected quarterly results. Allergan's board of directors also authorized an accelerated share-repurchase program to buy up to $10 billion of stock.

In a different news, on Aug 9, 2016, Nesli Basgoz (director) sold 758 shares at $253.02 per share price. The company has a market capitalization of $82.62 billion, a price-to-earnings ratio of 19.87 and a beta of 0.81. With the closing of the Teva deal, the company's restructured and simplified business is encouraging. These factors include, among others, the difficulty of predicting the timing or outcome of FDA approvals or actions, if any; the impact of competitive products and pricing; market acceptance of and continued demand for Allergan's products; difficulties or delays in manufacturing; and other risks and uncertainties detailed in Allergan's periodic public filings with the Securities and Exchange Commission, including but not limited to Allergan's Annual Report on Form 10-K for the year ended December 31, 2015.

With commercial operations in approximately 100 countries, Allergan is committed to working with physicians, healthcare providers and patients to deliver innovative and meaningful treatments that help people around the world live longer, healthier lives every day.

Latest News