Allergan’s second-quarter estimates

Leading pharmaceutical company Allergan (AGN) is set to release its second-quarter earnings results on July 26. Analysts expect its EPS to be $4.12 on revenue of $3.9 billion in the quarter.

Allergan’s Q2 2018 Earnings: Analysts’ Estimates

The chart above compares Allergan’s EPS and revenues since the first quarter of 2017 along with the company’s estimates for the second quarter of 2018.

Revenue estimates

Allergan is expected to report a 2.5% fall in its revenue to $3.9 billion during the second quarter compared to $4.0 billion during the first quarter of 2017. Its revenue is expected to fall due to lower sales of its women’s health products, diversified brands, and central nervous system products.

However, this revenue fall will likely be substantially offset by the strong sales of specialized therapeutic products and the favorable impact of foreign exchange during the quarter. Analysts expect revenue rises from Allergan’s US Specialized Therapeutics and International Business segments, and they expect revenue falls from its US General Medicine segment during the quarter.

Profitability estimates

Analysts expect Allergan’s gross profit margin to contract to 86.0% during the second quarter compared to its gross profit margin of 87.3% during the second quarter of 2017. The company’s EBITDA margin is expected to contract 1.6% to 49.0% during the second quarter compared to 50.6% in the second quarter of 2017.

Allergan’s EBITDA margin is expected to contract due to higher selling, general, and administrative expenses and higher research and development expenses during the second quarter. Its net adjusted income is expected to fall marginally to ~$1.42 billion during the second quarter compared to $1.43 billion during the second quarter of 2017.

The VanEck Vectors Biotech ETF (BBH) holds 5.3% of its total investments in Allergan, 9.0% in Gilead Sciences (GILD), 9.7% in Amgen (AMGN), and 6.2% in Biogen (BIIB).

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