
Allergan (AGN) Stock Rallies as Earnings Blow Away Forecasts, Jim Cramer's Take
NEW YORK (TheStreet) -- Allergan (AGN) - Get Report shares are jumping 1.24% to $313.13 on Wednesday morning after the Parsippany, NJ-based Botox maker reported better-than-expected third quarter 2015 earnings.
For the latest quarter, the company earned $3.48 a share, beating analysts' estimates of $3.18 a share.
Revenue came in at $4.09 billion, above forecasts of $4.03 billion.
For the third quarter of 2014, the company earned $2.11 a share on revenue of $2.15 billion.
TheStreet's Jim Cramer, Portfolio Manager of the Action Alerts PLUS Charitable Trust Portfolio, commented on Allergan earnings in 'Allergan Delivers a Healthy Third Quarter' saying: "We are certainly not surprised that Brent Saunders and his team delivered another exceptional quarter with widespread growth across product areas. Even better, the company's pipeline seems to be healthy as ever and its upcoming drugs are on track to add to their already strong leadership position across their target markets."
Additionally, CEO Saunders stated, "These strong results were driven by our continued focus on customers, fueling volume-driven year-over-year growth in our U.S. Brands, Medical Aesthetics, International Brands and Anda Distribution segments, while also executing pre-integration activities ahead of the divestiture of the Generics business to Teva Pharmaceutical Industries (TEVA), which remains on track to be completed in the first quarter of 2016."
However, sales of Botox and dry-eye drug Restasis came under analysts' estimates, according to Bloomberg.
Furthermore, pharmaceutical giant Pfizer (PFE) and Allergan have recently begun merger talks and are expected to reach an agreement by Thanksgiving.
Separately, TheStreet Ratings team rates ALLERGAN PLC as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
We rate ALLERGAN PLC (AGN) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and feeble growth in the company's earnings per share.
You can view the full analysis from the report here: AGN
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