Allergan, Inc. ( AGN - Analyst Report ) reported first quarter 2012 earnings of 86 cents per share, a penny below the Zacks Consensus Estimate but at the upper end of the guidance range of 84-86 cents per share.

While earnings increased 11.7% from the year-ago quarter, revenues increased 9.5% to $1,391.9 million. Revenues exceeded the Zacks Consensus Estimate of $1,380 million.

The Quarter in Details

Specialty pharmaceuticals sales increased 10.8% to $1,139.5 million, with eye care pharmaceutical sales increasing 10.2%. Products like Lumigan (up 5.6%) and Restasis (up 15.5%) helped drive eye-care sales.

Alphagan and Combigan franchise sales increased 11.9% to $112.2 million in the reported quarter. Latisse contributed $23 million to first quarter sales, down 8.9% from the year-ago figure. Sanctura franchise revenues fell 6% to $12.5 million.

Botox sales increased 9.4% year over year to $398.9 million.

Meanwhile, Allergan’s medical devices segment posted sales of $226.2 million, up 0.8%. While breast aesthetics sales increased 17% to $98.4 million, facial aesthetics sales decreased 5% to $83.8 million. The obesity intervention segment continued to disappoint, with sales declining 15.5% to $44 million.

Other Details

Selling, general and administrative (SG&A) expenses increased 7.6% during the quarter to $574.5 million. Research and development (R&D) expenses amounted to $224.8 million, up 13.7%.

2012 Guidance Reiterated

Allergan reiterated the guidance provided during the release of fourth quarter 2011 results. The company expects 2012 earnings to range from $4.13- $4.19 per share. The Zacks Consensus Estimate of $4.18 is towards the higher end of the company’s guidance range. Allergan expects product net sales to range from $5,650- $5,850 million.

For 2012, Allergan expects total specialty pharmaceuticals net sales to increase to $4,710 million - $4,870 million. Sales should be driven by Botox (guidance: $1,750 million - $1,800 million), Lumigan franchise (guidance: $640 million - $670 million) and Restasis (guidance: $740 million - $770 million).

Medical devices net sales are expected in the range of $940 million - $980 million in 2012. Here, performance will be driven mainly by breast aesthetics (guidance: $360 million - $380 million) and facial aesthetics (guidance: $410 million - $430 million). Obesity intervention sales are expected to decline in 2012 to approximately $170 million.

2Q12 Guidance Slightly Below Expectations

Allergan also provided guidance for the second quarter of 2012. The company expects to earn $1.04 - $1.06 per share on total product net sales of $1,450 million - $1,500 million. The Zacks Consensus Estimate currently stands above the guidance range at $1.08.

Allergan declared a first quarter 2012 dividend of 5 cents per share.

Recommendation

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