Back to top

Analyst Blog

Zacks Equity Research

Earnings Preview: Allergan

AGN

 ZacksTrade Now

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

Allergan, Inc. (AGN - Analyst Report) is scheduled to announce its first quarter 2012 results on May 2, 2012, before the opening bell. The Zacks Consensus Estimate for the first quarter is 87 cents (year-over-year increase of 13%) on revenues of $1,380 million (flat year-over-year). This is just above the company’s first quarter guidance of 84-86 cents per share. Allergan expects first quarter 2012 revenues to be in the range of $1,340 million– $1,390 million.

Fourth Quarter Recap

Allergan, Inc. reported fourth quarter 2011 earnings of $1.00 per share, in line with the Zacks Consensus Estimate and a penny above the guidance range of 97-99 cents per share. While earnings increased 13.6% from the year-ago quarter, revenues increased 7.1% to $1,402.3 million. Revenues, however, missed the Zacks Consensus Estimate of $1,408 million.

Fiscal 2011 earnings increased 15.5% from the year-ago period to $3.65 per share. Full year earnings were a penny above the Zacks Consensus Estimate and the company’s guidance range of $3.62–$3.64 per share. Revenues for the year increased 11.0% to $5,419.1 million, in line with the Zacks Consensus Estimate.

Agreement of Estimate Revisions

Of the 21 analysts following the stock, 1 analyst revised the first quarter estimate upward and 1 trimmed the estimate in the last 30 days. There were no revisions during the last 7 days. We believe that most analysts are remaining on the sidelines prior to the earnings release and will adjust their estimates only after Allergan discloses its results.

Fiscal 2012 estimates too have been left untouched by majority of the analysts following the company. None of the analysts revised their 2012 estimates in the last 7 days. Only 3 analysts have revised 2012 estimates, with 2 raising estimates and 1 moving in the opposite direction in last 30 days.

Magnitude of Estimate Revisions

The magnitude of change was negligible and the Zacks Consensus Estimate for the first quarter of 2012 remains unchanged at 87 cents. The upward revision was offset by the downward revisions and the Zacks Consensus Estimate for the full year 2012 remains unchanged at $4.18 per share.

Surprise History

Allergan has surpassed earnings estimates in three of the last four quarters and was in line with the estimates in one. The company recorded a maximum of 4.05% in the first quarter of 2011. On an average, the earnings surprise stood at 2.44%.

Our Recommendation

We currently have a Neutral recommendation on Allergan, which carries a Zacks #3 Rank (short-term Hold rating).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
DIXIE GROUP DXYN 15.84 +7.90%
BOFL HOLDING BOFI 85.30 +4.97%
RAMBUS INC RMBS 12.31 +4.41%
VIPSHOP HOLD VIPS 148.73 +4.35%
NETFLIX INC NFLX 345.74 +4.32%