Earnings Preview: Allergan

Allergan (AGN) is expected to report Q2 earnings with a conference call scheduled for 8:00 am ET.

Guidance

Analysts are looking for a profit of 63c on revenue of $1.13B. The consensus is 62c to 64c for EPS, and revenue of $1.10B to $1.15B, according to First Call. For Q1 the company reported Q1 EPS 53c vs. consensus of 52c and revenue in line at $1.06B. The company gave Q2 guidance 62c to 63c and revenue $1.13 to $1.16B.

Positive drivers for Q2 earnings include the company's global marketing expansion and continued demand for Botox. The negative risk this quarter is the effect that a softer global economy will have on elective medical procedures.

Analyst Views

On July 15, Oppenheimer reported that its checks with dermatologists and plastic surgeons indicate that the economy is negatively affecting procedure volumes, and the firm believes that Street estimates for the industry are at risk. As a result, the firm reduced its estimates for Allergan along with other stocks in the sector.