Allergan profit rises 16 percent in 4th quarter
Cosmetic drug and device maker Allergan Inc. said Tuesday its fourth-quarter profit increased more than 16 percent on higher sales of Botox and eye care products.
Net income for the period was $324.2 million, or $1.06 per share, up from $280 million, or 90 cents per share, in the last quarter of 2011. Excluding one-time expenses and write-offs the company would have earned $1.15 per share.
Total product sales increased 7.4 percent for the quarter to $1.51 billion. Eye care pharmaceuticals rose 7 percent to $706 million while Botox sales increased 14.3 percent $475 million.
Analysts polled by FactSet predicted earnings per share of $1.18 per share on revenue of $1.51 billion.
Skin care products increased 11 percent to $77.4 million while breast implant sales increased 5.8 percent to $91.4 million.
The company's performance was weighed down by its Lap-Band implant which is used to treat obesity. Sales fell 22 percent to $27 million in the quarter. The company has said it plans to sell the unit.
Looking ahead to 2013, Allergan expects earnings between $4.75 and $4.83 per share. Analysts expect $4.74 per share, on average.
Credit Suisse analyst Catherine Arnold said that estimate "is likely to be conservative, in our view, underscoring its attractive long-term growth story." She has an "Outperform" rating and $105 price target on the stock.
Allergan shares rose $1.40 to $106.47 in midday trading.