UPDATE: Allergan Posts Upbeat Q2 Earnings, Plans To lower 13% Of Workforce

Allergan

reported better-than-expected earnings for the second quarter and announced its plans to cut around 13% of its workforce. The Irvine, California-based company posted a quarterly profit of $417.2 million, or $1.37 per share, versus a year-ago profit of $359.9 million, or $1.17 per share. Its non-GAAP earnings came in at $1.51 per share. Its sales climbed 15.9% to $1.827 billion. However, analysts were expecting earnings of $1.44 per share on sales of $1.77 billion. Total product net sales surged 15.9%, while total specialty pharmaceuticals net sales rose 13.2%. Total core medical devices net sales surged 25.8%, while total specialty pharmaceuticals and core medical devices net sales jumped 15.1%. Allergan will book a pretax charge of $375 million to $425 million in connection with the restructuring and other costs. It estimates to deliver pretax savings of around $475 million in 2015. David E.I. Pyott, Allergan's Chairman of the Board and Chief Executive Officer said, “With continuing strong momentum, Allergan recorded the strongest increase in absolute dollar sales in any quarter in our history, and again delivered sales and earnings per share growth above the high end of our expectations.” For the third quarter, Allergan projects total product net sales of $1,675 million to $1,750 million and non-GAAP earnings of $1.44 to $1.47 per share. Allergan raised FY14 earnings forecast from $5.64 to $5.73 per share to $5.74 to $5.80 per share. Allergan shares gained 0.57% to $168.35 in pre-market trading.