Allergan Q1 Adjusted Earnings Beat Predictions, Revenue Miss

Allergan plc AGN reported a loss from continuing operations of $81.7 million or a loss of $0.38 a share in the first quarter. In comparison, the company suffered a wider net loss from continuing operations of $786.4 million or a loss of $2.80 in the year-ago quarter.

On an adjusted basis, Allergan would have witnessed 60.8 percent jump in net income to $1.27 billion from $789 million in the corresponding period of the last year. Similarly, earnings advanced 14.7 percent to $3.04 a share from $2.65 a share in the previous year quarter. This was $0.03 a share higher than the estimations of $3.01 a share.

The company's adjusted top line grew 48.1 percent to $3.9 billion from $2.56 billion in the same quarter last year. Analysts predicted the company to generate revenue of $3.95 billion.

CEO and President Brent Saunders commented about the results, "Allergan once again delivered strong performance in the first quarter of 2016, powered by double-digit pro forma branded revenue growth2 and our top global products within the U.S. Brands, U.S. Medical and International Brands segments. We also grew our Non-GAAP EPS by 15 percent, marking the seventh consecutive quarter of double-digit, year-over-year EPS growth since I became the CEO in July 2014."

He continued, "Thanks to the effort of our 30,000 colleagues around the world, Allergan remains the most dynamic and exciting company in our industry. That dynamism is evident in our results, in the way we operate our business, in the way we build category leadership through our Open Science model and in our highly responsive, service oriented approach to customers."

Saunders also said, "Our branded business continues to grow at a fast pace and is very well positioned in each of our seven therapeutic areas. As we look ahead, we see durable global brands with strong fundamentals, broad-based geographic expansion, and many opportunities to continue growing our innovative business."

Moving ahead, Allegan said its adjusted revenues are expected to be $17 billion for the current year. That included branded net revenue of $15 billion. Street analysts expect the company to deliver $16.88 billion revenue. The company indicated that its non-GAAP R&D is expected to be $1.5 billion.

In the pre-market trading, the stock traded 1.07 percent higher.