Allergan Inc. Stock Buy Recommendation Reiterated (AGN)
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- The revenue growth came in higher than the industry average of 4.9%. Since the same quarter one year prior, revenues slightly increased by 6.4%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- AGN's debt-to-equity ratio is very low at 0.28 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 3.61, which clearly demonstrates the ability to cover short-term cash needs.
- ALLERGAN INC's earnings per share improvement from the most recent quarter was slightly positive. 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, ALLERGAN INC turned its bottom line around by earning $3.01 versus -$0.03 in the prior year. This year, the market expects an improvement in earnings ($4.18 versus $3.01).
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Pharmaceuticals industry and the overall market on the basis of return on equity, ALLERGAN INC has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
- The gross profit margin for ALLERGAN INC is currently very high, coming in at 84.30%. Regardless of AGN's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 17.60% trails the industry average.
--Written by a member of TheStreet Ratings Staff. FREE for a limited time only: Get TheStreet Ratings #1 Stock Report NOW!
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