A look at Allergan’s Q3 2018 estimates

Allergan (AGN), a leading pharmaceutical company, is set to release its third quarter of 2018 earnings on October 30. Wall Street analysts estimate EPS of $4.03 on revenues of $3.88 billion.

Allergan’s Q3 2018 Earnings: Analysts’ Estimates

The above chart compares Allergan’s EPS and revenues since the first quarter of 2017 and provides the estimate for the third quarter of 2018.

Revenue estimates for Q3 2018

Allergan is expected to report a 3.8% decline in revenues to $3.88 billion for the third quarter compared to $4.03 billion for Q3 2017. Revenues are expected to decline due to lower sales of women’s health products, diversified brands, and central nervous system products. However, strong sales of specialized therapeutic products will substantially offset the decline in revenues.

Profitability estimates

Analysts are estimating that Allergan’s gross profit margin will decrease to 85.55% for the third quarter of 2018. That compares to a gross profit margin of 86.15% in Q3 2017. Its EBITDA margin is expected to decrease 1.6% to 49% in Q2 2018 compared to 50.6% in Q2 2017. The margin is expected to decrease marginally due to higher selling, general, and administrative expenses, partially offset by a decrease in R&D (research and development) expenses during the third quarter.

Its net adjusted income is expected to decrease to $1.37 billion in the third quarter of 2018 compared to $1.47 billion in Q3 2017.

The First Trust Nasdaq Pharmaceuticals ETF (FTXH) holds 4.1% of its total investments in Allergan (AGN), 3.5% in Bristol-Myers Squibb (BMY), 7% in Johnson & Johnson (JNJ), and 9% in Pfizer (PFE).

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