Earnings Preview: Allergan

Allergan (AGN) is expected to report Q3 earnings before market open Wednesday Oct. 29 with a conference call scheduled for 8:00 am.

Guidance

Analysts are looking for a profit of 65c on revenue of $1.11B. The consensus is 63c to 66c for EPS, and revenue of $1.09B to $1.14B, according to First Call. For Q2 the company reported EPS 63c vs. consensus 63c, and revenue $1.17B vs. consensus $1.13B. In July the company gave Q3 EPS guidance of 64c to 65c, and revenue guidance of $1.09B to $1.12B.

Analyst Views

Positive drivers for Q3 earnings include the company's global marketing expansion and demand for new drugs. The negative risk this quarter is a decline in cosmetic procedures which are sensitive to the overall economy. Allergan's aesthetic products account for approximately 20% to 25% of sales.

On October 27 Lazard Capital said that Allergan shares are undervalued at current levels. Lazard believes multiples are "excessively low" at current levels and maintains a Buy rating on the stock.