NEW YORK: Shares of Allergan (AGN) were declining in pre-market trading on Monday after the company posted weaker-than-expected revenue for the 2016 second quarter and provided a downbeat forecast for the full year.
Before today’s opening bell, the Dublin-based biopharmaceutical company reported revenue of $3.68 billion. Analysts were looking for revenue of $4.1 billion.
Adjusted earnings of $3.35 per diluted share beat analysts’ estimates by a penny.
For the full year, Allergan sees earnings per share between $13.75 and $14.20 on revenue of $14.65 billion to $14.90 billion. Analysts are modeling earnings of $14.21 per share on revenue of $16.63 billion for 2016.
“Allergan delivered another quarter of strong operating performance, while taking important steps to advance our evolution as a focused Growth Pharma leader,” CEO Brent Saunders said in a statement.
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Second-quarter consensus estimates may not reflect the disclosed impact of the company’s proposed sales of its Anda distribution business, Allergan noted.
(Allergan is held in Jim Cramer’s charitable trust Action Alerts PLUS. See all of his holdings with a free trial.) Separately, TheStreet Ratings Team has a “Hold” rating with a score of C on the stock.
The primary factors that have impacted the rating are mixed. The company’s strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth and compelling growth in net income. But the team also finds that the stock has had a generally disappointing performance in the past year.
Recently, TheStreet Ratings objectively rated this stock according to its “risk-adjusted” total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer’s view or that of this articles’s author.
