Allergan Posts Mixed Q2 Results, Guidance Disappoints

Allergan plc Ordinary Shares AGN announced mixed results as the revenue numbers came below the Street estimate. However, the company's adjusted EPS topped by a penny. Its guidance for the full year also disappointed.

The company reported GAAP operating loss from continuing operations of $488 million (or loss per share of $1.25) for the second quarter. However, its non-GAAP operating income from continuing operations was $1.86 billion or EPS of $3.35. This was $0.01 ahead of Street expectations of $3.34.

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Allergan's total net revenues were $3.7 billion, representing a 2 percent increase from the prior year's quarter. The company indicated its results were unfavorably impacted by the loss of exclusivity on Namenda IR, although they were offset by strong performance in key brands and new product launches. Analysts' predicted $4.10 billion revenue.

The company's CEO and president, Brent Saunders, commented, "2016 has been a year of significant, positive transition for Allergan. On August 2, we announced the completion of the divestiture of our Global Generics business, and on August 3, announced the proposed divestiture of our Anda distribution business, to Teva."

Going forward, Allergan expects net revenues to be $14.65–$14.90 billion for the full year. The company sees adjusted EPS between $13.75 and $14.20. Analysts are looking for EPS of $14.21 on revenues of $16.63 billion.

In Monday's pre-market session, ordinary shares of Allergan were down 1.12 percent at $251.04.

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