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Allergan’s 3Q17 Earnings: Analysts’ Estimates

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Oct. 30 2017, Published 1:02 p.m. ET

A look at Allergan’s 3Q17 estimates

Allergan (AGN) is one of the leading pharmaceutical companies, and it’s set to release its 3Q17 earnings on November 1. Wall Street analysts estimate Allergan’s earnings per share (or EPS) at $4.05 on revenues of $4.03 billion in 3Q17.

The above chart compares actual figures and analysts’ estimates for earnings per share over the last few quarters as well as estimates for 3Q17.

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3Q17 revenue estimates

Allergan is expected to report 11.4% growth in revenues to $4.03 billion in 3Q17, compared to $3.62 billion in 3Q16. Revenue growth is expected to be driven by strong sales of US specialized therapeutics and revenues from international sales, partially offset by the negative impact of foreign exchange in 3Q17.

Allergan divested the global generics business and ANDA distribution business to Teva Pharmaceuticals (TEVA) in 2016.

Profitability estimates

For Allergan, analysts estimate the gross profit margin to fall marginally to $86.3% in 3Q17, compared to the gross profit margin of 87.8% in 3Q16. Also, the EBITDA[1. Earnings before interest, tax, depreciation, and amortization] margin is expected to fall 4.5% to 48.0% in 3Q17, compared to 52.5% in 3Q16. The EBITDA margin is expected to fall due to an increase in selling, general, and administrative expenses, partially offset by lower research and development expenses in 3Q17. The net adjusted income is expected to rise to ~$1.44 billion in 3Q17, compared to $1.38 billion in 3Q16.

Notably, the iShares Core S&P 500 ETF (IVV) invests 0.4% of its total assets in Allergan (AGN). IVV also invests 0.4% in Eli Lilly and Co. (LLY), 0.4% in Abbott Laboratories (ABT), and 0.5% in Bristol-Myers Squibb Co. (BMY).

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