Multi-specialty health care company Allergan Inc. (AGN) on Wednesday reported a profit for the third quarter compared to a loss last year, when results included a hefty charge to settle federal allegations regarding the company's past U.S. sales and marketing practices relating to certain therapeutic uses of Botox. Adjusted earnings increased and topped analysts' expectations.
Looking ahead, the company forecast earnings for the fourth quarter below analysts' estimates, but raised its earnings outlook for fiscal year 2011.
The Irvine, California-based company's net earnings for the third quarter were $249.8 million or $0.81 per share, compared to net loss of $670.5 million or $2.21 per share in the prior-year period.
Excluding items, adjusted earnings per share rose to $0.92 from $0.78 in the year-ago period. On average, 23 analysts polled by Thomson Reuters expected earnings of $0.90 per share for the quarter. Analysts' estimates typically exclude one-time items.
Revenues rose 10 percent to $1.33 billion from $1.21 billion in the previous-year period. Analysts had a consensus estimate of $1.33 billion.
Allergan's total product net sales for the quarter rose 10 percent, or 7.2 percent on a constant currency basis, from the year-ago quarter to $1.31 billion.
Specialty pharmaceuticals net sales increased 10.1 percent, or 7.5 percent on a constant currency basis, and medical devices net sales rose 9.2 percent, or 5.6 percent on a constant currency basis from last year.
During the third quarter, sales of anti-wrinkle treatment Botox increased 16.1 percent to $396.7 million, while sales of facial aesthetics rose 29.1 percent to $88.4 million from the prior-year quarter. Eye care pharmaceuticals contributed the maximum sales of $611.6 million, up 7.5 percent from last year.
Allergan's board declared a third-quarter dividend of $0.05 per share, payable on December 1, 2011 to stockholders of record on November 10, 2011.
Looking ahead to the fourth quarter, Allergan forecasts adjusted earnings in a range of $0.97 and $0.99 per share on total product net sales between $1.33 billion and $1.405 billion. Analysts expect the company to earn $1.01 per share for the quarter on revenues of $1.41 billion.
For fiscal 2011, Allergan now expects adjusted earnings in a range of $3.62 to $3.64 per share, up from the prior range of $3.59 to $3.63 per share.
The company also raised the lower end of its full-year outlook for product net sales. The company now projects total product net sales between $5.295 billion and $5.370 billion, compared to the prior range of $5.22 billion and $5.37 billion.
Analysts expect the company to report earnings per share of $3.64 for the year on revenues of $5.42 billion.
In Wednesday's regular trading, AGN is trading at $83.90, down $3.06 or 3.52 percent on a volume of 1.86 million shares.
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