Allergan Q4 Results Top Estimates, Guides Q1 EPS Below View

(RTTNews) - Multi-specialty health care company Allergan, Inc. (AGN) reported Tuesday a profit for the fourth quarter that declined from last year, despite revenue growth, reflecting higher expenses. Both adjusted earnings per share and quarterly revenues topped analysts' expectations. The company also provided earnings forecast for the first quarter, below, and for the full-year 2014, in line with Street view.

The Irvine, California-based specialty drug maker reported net earnings of $312.9 million or $1.04 per share for the fourth quarter, lower than $324.2 million or $1.06 per share in the prior-year quarter.

Excluding items, adjusted net income was $405.5 million or $1.35 per share, compared to $340.8 million or $1.12 per share in the year-ago quarter.

On average, 26 analysts polled by Thomson Reuters expected the company to report earnings of $1.34 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the quarter increased to $1.68 billion from $1.47 billion in the same quarter last year, and topped nineteen Wall Street analysts' consensus estimate of $1.65 billion.

Allergan's total product net sales for the quarter increased 14.6 percent or 15.6 percent on a constant currency basis, from the year-ago quarter to $1.66 billion. Domestic sales accounted for 63.1 percent of the product sales, and international sales accounted for 36.9 percent of product sales.

Specialty pharmaceuticals net sales increased 14.0 percent or 15.0 percent on a constant currency basis, to $1.43 billion, with anti-wrinkle treatment Botox/Neuromodulator sales growing 10.7 percent, eye care pharmaceuticals sales increasing 10.8 percent, as well as skin care and other sales advancing 88.8 percent.

Total core medical devices net sales also grew 17.0 percent or 17.8 percent on a constant currency basis, to $226.8 million from last year.

Selling, general and administrative expenses as a percentage of total revenues increased 560 basis points to 43.1 percent from last year.

Allergan also said its board of directors declared a fourth-quarter dividend of $0.05 per share, payable on March 21 to stockholders of record on February 28, 2014.

For fiscal 2013, Allergan reported net earnings of $985.1 million or $3.26 per share, lower than $1.10 billion or $3.58 per share in the prior year. Earnings from continuing operations grew to $1.27 billion or $4.20 per share, compared to $1.10 billion or $3.57 per share last year. Excluding items, adjusted earnings from continuing operations was $1.44 billion or $4.77 per share, compared to $1.24 billion or $4.04 per share in the year ago.

Revenues for the full year increased to $6.30 billion from $5.65 billion in the previous year.

Analysts expected the company to report full-year 2013 earnings of $4.76 per share on annual revenues of $6.26 billion.

"We are pleased to have once again achieved our double digit revenue and mid teens earnings per share growth aspirations for full year 2013 as we benefited from many regulatory approvals in the past few years," Chairman and CEO David Pyott said in a statement.

Looking ahead to the first quarter, Allergan forecasts adjusted earnings in a range of $1.09 to $1.12 per share, on anticipated total product net sales between $1.525 billion and $1.600 billion. Analysts expect the company to report earnings of $1.21 per share on quarterly revenues of $1.60 billion.

For fiscal 2014, Allergan expects adjusted earnings in the range of $5.36 to $5.48 per share, on projected total product net sales between $6.650 billion and $6.950 billion, which excludes the obesity intervention business.

Street is currently looking for full-year 2014 earnings of $5.46 per share, on annual revenues of $6.78 billion.

"Furthermore, we look forward to delivering similar revenue and earnings growth in 2014," Pyott added.

In Wednesday's regular trading session, AGN is currently trading at $113.35, down $1.34 or 1.17% on a volume of 0.59 million shares.