uploads/2018/09/Chart-011-Allergan-1.jpg

Pharma Stocks: Allergan’s Revenue Trend and 2018 Estimates

By

Updated

Allergan’s revenue

Allergan (AGN) reported revenue of $4.1 billion in the second quarter, a 2.9% YoY (year-over-year) rise in revenue compared to its revenue of $4.0 billion in the second quarter of 2017.

The chart above compares Allergan’s revenues since the first quarter of 2017.

Article continues below advertisement

Revenue performance in the second quarter

Allergan reported non-GAAP (generally accepted accounting principles) EPS of $4.42 on revenue of $4.1 billion in the second quarter.

Allergan’s business is divided into three segments:

  • US Specialized Therapeutics
  • US General Medicines
  • International Business

The US Specialized Therapeutics segment reported a 6.5% YoY rise in revenue to $1.83 billion in the second quarter compared to $1.72 billion in the second quarter of 2017. This revenue growth was driven by the strong performances of its regenerative medicines, CoolSculpting, and key brands. The growth was partially offset by the lower sales of Restasis and its medical dermatology products.

The US General Medicines segment reported a ~7.5% fall in revenue to $1.32 billion in the second quarter compared to $1.43 billion in the second quarter of 2017. The decrease in the segment’s revenue was driven by the lower sales of its central nervous system products, women’s health products, and diversified brands.

The company’s international business reported a 10.5% YoY rise in revenue to $949 million in the second quarter compared to $859 million in the second quarter of 2017. The growth was driven by 8.1% operational growth due to the strong sales of its medical esthetics products, eye care products, and Botox therapeutics. Foreign exchange had a 2.4% favorable impact on Allergan’s overall revenue in the quarter.

Estimates for 2018

Analysts expect Allergan to report a 2.7% YoY fall in revenue to $15.53 billion in 2018 compared to ~$15.94 billion in 2017. Its adjusted EPS are expected to fall marginally by ~0.4% to $16.29 in 2018.

The VanEck Vectors Morningstar Wide Moat ETF (MOAT) holds 3.1% in Eli Lilly and Company (LLY), 2.8% in Allergan, 2.8% in Merck & Co. (MRK), and 2.8% in Pfizer (PFE).

Advertisement

More From Market Realist