Allergan (NYSE: AGN)
Allergan is having a strong start in the market today, and for good reason. The company recently reported earnings for the fourth quarter of 2015, beating expectations. Today, we'll take a look at the earnings report, how the market reacted to the news, and what we can expect to see moving from AGN forward. So, let's get right to it!
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AGN Produces Better Than Expected Earnings
As mentioned above, Allergan released its earnings report for the fourth quarter of 2015, as expected, early this morning. However, what the company produced with regard to earnings was well ahead of what analysts expected to see. Here's what we saw from the AGN earnings report:
- Revenue – In terms of revenue, AGN did well, but didn't blow away expectations. In fact, the company hit the nail on the head. For the fourth quarter, analysts expected for the company to generate $4.2 billion in revenue. That was exactly the amount that was produced. No beat, no miss.
- Earnings Per Share – In terms of earnings per share, AGN did far better than what we saw from revenue. The company blew away analyst expectations. When it comes to earnings, for the fourth quarter, analysts expected the company to produce earnings per share in the amount of $3.36. However, the company actually produced earnings per share in the amount of $3.41, beating expectations by $0.05.
- Guidance – In terms of guidance for the fiscal year 2016, AGN came in below analyst expectations. The overall opinion of analysts is that the company should produce about $17.66 billion in revenue throughout the year. However, Allergan actually reported guidance stating that they expect to see revenue in the $17 billion area.
How The Market Reacted To The News
As investors, we have learned that earnings are one of the biggest drivers of movement in the market. When a company produces solid earnings, we can expect to see strong bullish movement on the stock associated with that company. Adversely, when a company produces negative earnings, we can expect to see poor movement on the stock as a result. So naturally, after beating earnings expectations, AGN is climbing in the market. Currently (9:19), Allergan is trading at $280.01 after a gain of $4.26 per share or 1.54% thus far today.
What We Can Expect From AGN Moving Forward
Moving forward, I have a relatively bullish opinion of what we can expect to see from AGN. When we talk about Allergan, we're talking about one of the largest biopharmaceutical companies in the world. The company has a long list of products that do incredibly well in the market and is consistently working to expand their product line. With an incredibly strong earnings history, AGN has proven its ability to produce growth. Allergan has an impressive management team, strong staff, and a clear plan for growth, and since investors ultimately invest for growth, they give investors great reasons to be bullish. All in all, things look great for AGN moving forward.
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What Do You Think?
Where do you think AGN is headed moving forward? Let us know your opinion in the comments below!
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