Allergan Meets on the Top Line, Misses Where it Counts

Allergan (NYSE: AGN  ) reported earnings on Feb. 5. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Allergan met expectations on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue expanded and GAAP earnings per share expanded significantly.

Margins grew across the board.

Revenue details
Allergan reported revenue of $1.51 billion. The 23 analysts polled by S&P Capital IQ expected to see revenue of $1.51 billion on the same basis. GAAP reported sales were 7.6% higher than the prior-year quarter's $1.40 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $1.15. The 26 earnings estimates compiled by S&P Capital IQ anticipated $1.18 per share. GAAP EPS of $1.06 for Q4 were 18% higher than the prior-year quarter's $0.90 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 87.5%, 50 basis points better than the prior-year quarter. Operating margin was 32.4%, 240 basis points better than the prior-year quarter. Net margin was 21.5%, 150 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $1.48 billion. On the bottom line, the average EPS estimate is $1.04.

Next year's average estimate for revenue is $6.28 billion. The average EPS estimate is $4.74.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 413 members out of 437 rating the stock outperform, and 24 members rating it underperform. Among 129 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 125 give Allergan a green thumbs-up, and four 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 $100.81.

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