Allergan beats by $0.07, beats on revs; guides Q3 EPS in-line, revs in-line; raises FY14 guidance; guides FY15 EPS above consensus
Reports Q2 (Jun) earnings of $1.51 per share, excluding non-recurring items, $0.07 better than the Capital IQ Consensus Estimate of $1.44; revenues rose 16.7% year/year to $1.86 bln vs the $1.77 bln consensus; total product net sales increased 15.9%.
Co issues in-line guidance for Q3, sees EPS of $1.44-1.47, excluding non-recurring items, vs. $1.45 Capital IQ Consensus; sees Q3 net product sales of $1.675-1.750 bln vs. $1.72 bln Capital IQ Consensus Estimate.
Co issues guidance for FY14, raises EPS to $5.74-5.80, excluding non-recurring items, from $5.64-5.73 vs. $5.71 Capital IQ Consensus; raises FY14 net product sales to $6.90-7.05 bln from $6.775-7.00 bln vs. $6.98 bln Capital IQ Consensus Estimate.
Allergan estimates 2016 EPS at ~$10.00.
Additional strategic options are available including business development / acquisitions and capital return. Allergan reconfirms its aspiration of double digit sales growth across the strategic plan period (2014 through 2019), as the planned reductions in selling, general and administrative expenses and reduced focus on lower-value spend will have only a modest impact on the net sales growth.
Allergan will execute a restructuring in the remainder of 2014 that it estimates will deliver annual pre-tax savings of ~ $475 million in calendar year 2015 as compared to previously communicated 2015 expectations. Such savings will come from efficiencies and reductions in spend across the commercial organization, general and administrative functions, manufacturing and the research and development organization.
Co issues in-line guidance for Q3, sees EPS of $1.44-1.47, excluding non-recurring items, vs. $1.45 Capital IQ Consensus; sees Q3 net product sales of $1.675-1.750 bln vs. $1.72 bln Capital IQ Consensus Estimate.
Co issues guidance for FY14, raises EPS to $5.74-5.80, excluding non-recurring items, from $5.64-5.73 vs. $5.71 Capital IQ Consensus; raises FY14 net product sales to $6.90-7.05 bln from $6.775-7.00 bln vs. $6.98 bln Capital IQ Consensus Estimate.
- Total specialty pharmaceuticals net sales between $5,865 million and $5,975 million. Total core medical devices net sales between $1,010 million and $1,050 million. RESTASIS product net sales between $1,040 million and $1,070 million. BOTOX product net sales between $2,200 million and $2,280 million.
Allergan estimates 2016 EPS at ~$10.00.
Additional strategic options are available including business development / acquisitions and capital return. Allergan reconfirms its aspiration of double digit sales growth across the strategic plan period (2014 through 2019), as the planned reductions in selling, general and administrative expenses and reduced focus on lower-value spend will have only a modest impact on the net sales growth.
Allergan will execute a restructuring in the remainder of 2014 that it estimates will deliver annual pre-tax savings of ~ $475 million in calendar year 2015 as compared to previously communicated 2015 expectations. Such savings will come from efficiencies and reductions in spend across the commercial organization, general and administrative functions, manufacturing and the research and development organization.