TSC Ratings' Updates: Allergan

AGN's revenue growth has slightly outpaced the industry average of 14.4%. Since the same quarter one year prior, revenue rose by 19.8%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.

AGN has improved earnings per share by 6.7% in the most-recent quarter compared with the same quarter a year ago. The company has demonstrated a pattern of positive earnings-per-share growth over the past two years. We feel that this trend should continue. During the past fiscal year, AGN turned its bottom line around by earning $1.62 vs. a loss of 61 cents in the prior year. This year, the market expects an improvement in earnings ($2.59 vs. $1.62).

The net income growth from the same quarter one year ago has greatly exceeded that of the S&P 500, but is less than that of the pharmaceuticals industry average. The net income increased by 6.9% when compared with the same quarter one year prior, going from $137.80 million to $147.30 million.

The gross profit margin for AGN is currently very high, coming in at 86.10%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 12.60% trails the industry average.

Despite currently having a low debt-to-equity ratio of 0.41, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Despite the fact that AGN's debt-to-equity ratio is mixed in its results, the company's quick ratio of 2.37 is high and demonstrates strong liquidity.