Allergan Shares Drop 3.7% After Forecast Misses Estimates
Allergan Inc., the maker of wrinkle- smoothing Botox, fell 3.7 percent after the company projected annual sales and fourth-quarter profit that would fall short of analyst estimates.
Allergan dropped to $83.74 at the close of New York trading for its biggest one-day decline since Aug. 10. The Irvine, California-based company said in a statement today that it expects fourth-quarter earnings excluding one-time items of 97 cents to 99 cents. That’s below the $1.01 average estimate of 22 analysts surveyed by Bloomberg.
The company’s projection for net product sales of as much as $5.37 billion this year also was less than analyst expectations of $5.42 billion. Third-quarter profit excluding one-time items of 92 cents a share was a penny above estimates, helped by growing use of Botox as a migraine treatment.
“For a stock with high expectations, it’s not surprising it’s down a little bit, with their Q4 guidance coming in below consensus,” said Corey Davis, a Jefferies & Co. analyst in New York, in an e-mail. He rates the shares a “hold.”
The shares have gained 22 percent this year.
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