Allergan (AGN) met the Wall Street analysts’ estimates for revenues in 3Q17 and surpassed estimates for EPS (earnings per share) during the same quarter, reporting EPS of $4.15 on revenues of $4.03 billion, compared with the analysts’ estimates $4.05 and $4.03 billion, respectively.
The analysts estimate EPS of $4.72 on revenues of $4.27 billion for 4Q17, which would be 10.5% higher YoY (year-over-year). AGN’s gross margin is expected to be 86.5%, compared with 87.0% in 4Q16, while its EBITDA (earnings before interest, tax, depreciation, and amortization) margin is expected to be 52.3% in 4Q17, compared with 51.1% in 4Q16.
AGN’s net profit margin is expected to be 38.8% in 4Q17, compared with 38.2% in 4Q16.
Analysts estimate that AGN will report EPS of $16.24 for 2017, compared with its $13.51 in 2016. Revenues are expected to rise to ~$15.9 billion for 2017, which would be 9.0% higher YoY, compared with ~$14.6 billion for 2016.
This growth is expected to be driven by specialized therapeutic products as well as few of the General Medicines products in both the US and outside of US markets.
AGN’s gross margin is expected to fall to 86.7% in 2017, compared with 87.6% in 2016. Its EBITDA margin is expected to fall to 49.9% in 2017, compared with 52.4% in 2016. Its net profit margin is expected to fall to 36.3% in 2017, compared with 37.8% in 2016.
Notably, the Health Care Select Sector SPDR (XLV) has 1.9% of its total investments in Allergan (AGN). XLV also has 2.2% in Biogen (BIIB), 2.5% in Abbott Laboratories (ABT), and 3.3% in Bristol-Myers Squibb (BMY).