(By Balachander) Allergan Inc. (NYSE: AGN) posted flat quarterly profit as jump in expenses offset an increase in revenue, and the company updated its forecast for the full year. Earnings topped market expectations, while top-line missed consensus.
The health care company also declared a third-quarter dividend of 5 cents per share, payable on December 12, 2012 to stockholders of record on November 21, 2012.
On a non-GAAP basis, earnings per share (EPS) attributable to stockholders grew 15 percent to $1.06 from $0.92, topping Wall Street expectations of $1.04.
Net earnings attributable to Allergan were flat at $249 million.
Revenue rose 6.4 percent to $1.41 billion, versus market expectations of a growth of 7.4 percent.
Total product sales rose 6 percent. Specialty pharmaceuticals net sales increased 8 percent, while sales of medical devices fell 4 percent.
Research and development expenses jumped 32 percent.
"In the third quarter, Allergan again delivered solid earnings growth in spite of the strong U.S. Dollar relative to virtually all major currencies," commented CEO David Pyott.
Looking ahead for the fourth quarter, Allergan forecasts non-GAAP EPS attributable to stockholders between $1.18 and $1.20 on total product net sales between $1.47 billion and $1.54 billion. Wall Street analysts expect earnings of $1.20 per share.
For the full year, the company now expects EPS in the range of $4.17 to $4.19 from prior expectations of $4.15 to $4.19. Total product net sales is now projected to be between $5.69 billion and $5.77 billion from $5.65 billion to $5.80 billion projected earlier. Analysts expect earnings of $4.17 per share.
Shares ended at $91.64 on Friday. Over the past year, the stock has been trading in the range of $78.42 to $97.09.