Earnings Preview: Allergan's EPS, Revenue Expected to Rise

Allergan (NYSE: AGN) unveils its next round of earnings this Wednesday, August 3, 2011. Here is Benzinga's everything-that-matters guide for this Wednesday's second quarter earnings announcement.

Earnings and Revenue:

Ahead of the company's earnings announcement, analysts are expecting a positive EPS reading of 95 cents per share and revenues of $1.34 billion. Whether the reported numbers beat or miss analysts' estimates, they will also be compared against last year's numbers for the same period, which were a profit of 85 cents per share on revenues of $1.25 billion. We'll know on Wednesday whether Allergan has managed the estimated 11.8% increase in EPS and 7.2% rise in revenues on a year-over-year basis.

Here's how the company's reported EPS has stacked up against analyst estimates in the past:

Stock Performance:

As of July 28, 2011, Allergan's current share price was $81.75. Shares are up 19.2% year to date. For a full 12 months, the return has risen by 20%. Given that these returns are generally positive, long-term shareholders are probably satisfied going into this earnings release.

• Long-term shareholders are already enjoying 12-month gains prior to the announcement

Average Stock Rating:

The average rating by analysts for Allergan is a Moderate Buy. This rating has strengthened slightly over the past ninety days.

Competitors:

Want to check out the performance of Allergan closest competitors? Take a look at some of the company's peers in the healthcare sector.

• Akorn (NASDAQ: AKRX): Strong Buy with a $0.06 recent quarter EPS
• Endo Pharmaceuticals (NASDAQ: ENDP): Hold with a $1.00 recent quarter EPS
• GlaxoSmithKline (NYSE: GSK): Hold with a $0.81 recent quarter EPS
• Hospira (NYSE: HSP): Moderate Buy with a $0.93 recent quarter EPS

Allergan is in the large-cap pharmaceutical industry, which has experienced price/earnings growth of 2.9%.

Finally, a description of the company's main areas of operation: Allergan is a global specialty health care company. It discovers, develops and commercializes innovative pharmaceuticals, biologics and medical devices, as well as over-the-counter products.

Take Action:

Now that you've gotten an advanced peak at Allergan's upcoming earnings numbers, keep an eye out for any surprises in the report and be ready to take action. Also, check back in with us after the announcement for a full recap and a guide to your next steps.

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