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Allergan Posts 16% Increase in Third-Quarter Profits

Earnings: The Irvine manufacturer surpasses analysts' expectations and projects more growth.

October 21, 2000|From Reuters

Allergan Inc., a maker of eye medicines, contact lens cleaners and skin-care treatments, Friday reported a 16% increase in third-quarter profits--surpassing Wall Street's expectations--and forecast even stronger earnings growth in the fourth quarter.

The Irvine company, which also makes the neuromuscular drug Botox that can be used to diminish wrinkles, said quarterly net earnings rose to $54.6 million, or 41 cents a share, from $47 million, or 35 cents, a share a year earlier.

Analysts on average expected the company to report third-quarter profits of 40 cents a share.

Allergan said worldwide sales increased 10% to $381.6 million, and Botox sales grew 40.8% to $60.7 million. Sales for the ophthalmic surgical business were $59 million in the period, up 8.5%.

Looking ahead to the fourth quarter, Allergan said it expects earnings per share to grow about 20% to about 48 cents a share and generate revenues ranging from $400 million to $415 million, up from $380.3 million.

Analysts polled by First Call/Thomson Financial estimate per-share profit of 47 cents in the upcoming fourth quarter.

Allergan noted that Europe's sagging currency "has created challenges," but said the company still should be able to meet internal projections. Allergan generates about 25% of its sales in Europe.

The stock rose $2.19 to $76.19 a share on the New York Stock Exchange. The shares have gained more than 53% this year.

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