Multi-specialty health care company Allergan, Inc. (AGN) reported Wednesday a profit for the first quarter that increased from last year, boosted by revenue growth amid 8.4 percent product sales increase.
Both adjusted earnings per share from continuing operations and quarterly revenues topped analysts' expectations. The specialty drug maker also provided earnings forecast for the second quarter, below Street view, and lowered its earnings outlook for the full-year 2013.
"In the first quarter, Allergan generated strong sales and earnings growth. We are pleased with the rapid integration of SkinMedica, the completion of the MAP Pharmaceuticals acquisition and are committed to bringing LEVADEX® as an innovative therapy for migraine to market," Chairman, President and CEO David Pyott said in a statement.
The Irvine, California-based company reported net earnings of $12.5 million, or $0.04 per share for the first quarter, sharply lower than $229.8 million or $0.74 per share in the prior-year quarter.
The results from Allergan's obesity intervention business unit are reported as discontinued operations as a result of the company's approved plan to sell the unit.
Earnings from continuing operations for the quarter increased to $271.1 million or $0.89 per share from $227.9 million or $0.74 in the year-ago quarter.
Excluding items, adjusted earnings from continuing operations was $296.2 million or $0.98 per share, compared to $257.6 million or $0.83 per share in the year-ago quarter.
On average, 25 analysts polled by Thomson Reuters expected the company to report earnings of $0.96 per share for the first quarter. Analysts' estimates typically exclude special items.
Revenues for the quarter increased to $1.46 billion from $1.35 billion in the same quarter last year, and topped twenty Wall Street analysts' consensus estimate of $1.44 billion by a whisker.
Allergan's total product net sales from continuing operations for the first quarter increased 8.4 percent, or 9.0 percent on a constant currency basis, from the year-ago quarter to $1.43 billion.
Specialty pharmaceuticals net sales increased 8.1 percent, or 8.7 percent on a constant currency basis to $1.23 billion, with anti-wrinkle treatment Botox/Neuromodulator sales growing 14.8 percent and eye care pharmaceuticals sales increasing 2.5 percent.
Medical devices net sales grew 10.2 percent, or 10.5 percent on a constant currency basis to $200.7 million from last year.
Allergan also announced a dividend for the first quarter of $0.05 per share, payable on June 12 to shareholders on record as of May 23, 2013.
Looking ahead to the second quarter, Allergan forecasts adjusted earnings from continuing operations in a range of $1.18 to $1.20 per share, on anticipated total product net sales between $1.50 billion and $1.575 billion. Analysts expect the company to report earnings of $1.22 per share on quarterly revenues of $1.57 billion.
For fiscal 2013, Allergan now expects adjusted earnings from continuing operations in the range of $4.70 to $4.76 per share, on projected total product net sales between $5.975 billion and $6.20 billion, which excludes the obesity intervention business. Previously, the company projected adjusted earnings of $4.75 to $4.83 per share, on total product net sales between $5.90 billion and $6.20 billion.
Street is currently looking for full-year 2013 earnings of $4.76 per share, on annual revenues of $6.16 billion.
Both the guidance include the dilutive impact of the acquisition of MAP Pharmaceuticals, which was completed on March 1, 2013.
In Wednesday's regular trading session, AGN is currently trading at $107.62, down $5.93 or 5.22% on a volume of 1.50 million shares.
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