Allergan Earnings Preview: Analysts Expect Higher EPS, Revenue
Allergan (NYSE: AGN) releases its next round of earnings this Wednesday, October 26, 2011. Here's Benzinga's advanced look at Allergan's third quarter earnings report.
Earnings and Revenue:
Wall Street expects an EPS of 90 cents/share and revenues of $1.33 billion. Allergan's latest numbers will no doubt be compared with the company's year-ago quarter, when it reported a profit of 78 cents/share on revenues of $1.21 billion. We'll know on Wednesday whether Allergan has managed the estimated 15.4% increase in EPS and 9.9% 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:
| Quarter | Q2 | Q1 | Q4 | Q3 |
| EPS Estimate | $0.95 | $0.74 | $0.89 | $0.78 |
| EPS Actual | $0.96 | $0.77 | $0.88 | $0.78 |
Stock Performance:
As of October 24, 2011, Allergan's current share price was $89.01. Since January 1st, shares of Allergan have given investors a return of 29.9%. For a full 12 months, the return has risen by 22.8%. 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:
Wondering how some of the other healthcare companies are doing? Here are a few of Allergan's peers in that sector.
- Akorn (NASDAQ: AKRX): Strong Buy with a $0.04 recent quarter EPS
- Endo Pharmaceuticals (NASDAQ: ENDP): Moderate Buy with a $1.05 recent quarter EPS
- GlaxoSmithKline plc (NYSE: GSK): Hold with a $0.81 recent quarter EPS
- Hospira (NYSE: HSP): Hold with a $0.94 recent quarter EPS
The large-cap pharmaceutical company's industry has seen price/earnings growth of 0.9% during the current fiscal year.
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:
That's your advanced look at Allergan's upcoming earnings numbers -- be ready to take quick action if the company's report contains any surprises. Also, check back in with us after the announcement for a full recap and what-to-do-next guide.
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