By Tess Stynes
Allergan Inc.'s (AGN) third-quarter earnings edged down slightly as the maker of Botox and medical devices posted more one-time items, masking continued sales growth for top drug Botox.
Since the end of the quarter, Allergan said it is exploring strategic options for its obesity intervention business, including among other things, a potential sale of the unit.
For the year, the company raised the lower end of its guidance and now expects per-share earnings of $4.17 and $4.19 on product sales of $5.7 billion to $5.8 billion. Its prior view was for per-share profit of $4.15 to $4.19 and product sales of $5.65 billion to $5.8 billion.
For the current quarter, Allergan forecast per-share earnings of $1.18 to $1.20 on revenue of $1.47 billion to $1.55 billion. Analysts polled by Thomson Reuters most recently expected $1.20 and $1.51 billion, respectively.
Chief Executive David E.I. Pyott in August had commented that the company is watching carefully for signs of economic vulnerability, but doesn't see a threat to long-term goals. Allergan's cosmetic medical products seem to appeal to people with greater economic means and purchasing power, providing some shelter from economic turmoil, he said at the time.
Allergan reported a profit of $249.4 million, down from $249.8 million a year earlier. On a per-share basis, earnings were up at 82 cents from 81 cents amid fewer shares outstanding. Excluding acquisition and restructuring related charges and other items, earnings were up at $1.06 from 92 cents.
Revenue increased 6.4% to $1.41 billion. Product net sales were up 6.1% to $1.39 billion, and were up 9.4% excluding currency impacts.
The company in August forecast per-share earnings of $1.02 to $1.04 on revenue of $1.37 billion to $1.45 billion.
Gross margin rose to 86.7% from 85.8% amid the increased revenue.
Sales of Botox, which is used as a medical treatment and wrinkle-fighting cosmetic tool, rose 8.8% to $431.6 million.
Specialty pharmaceutical sales--which make up the bulk of Allergan's revenue-increased 8.1%, or roughly 11% excluding currency fluctuations.
Write to Tess Stynes at email@example.com
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