Allergan plc (AGN) saw its loss narrow to $0.60 million, or $0.20 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $630.90 million, or $1.78 a share. On the other hand, adjusted net income for the quarter stood at $1,475.10 million, or $3.90 a share compared with $1,395.10 million or $3.36 a share, a year ago.
Revenue during the quarter grew 7.14 percent to $3,864.30 million from $3,606.90 million in the previous year period. Gross margin for the quarter expanded 427 basis points over the previous year period to 87.59 percent. Operating margin for the quarter stood at negative 23.29 percent as compared to a negative 15.79 percent for the previous year period.
Operating loss for the quarter was $900 million, compared with an operating loss of $569.50 million in the previous year period.
However, the adjusted operating income for the quarter was almost stable at $1,868.70 million when compared with the prior year period. At the same time, adjusted operating margin contracted 341 basis points in the quarter to 48.36 percent from 51.77 percent in the last year period.
"2016 was a year of transformation for Allergan. We are now a branded biopharmaceutical leader, focused on delivering sustainable revenue growth, advancing our pipeline, maintaining industry leading margins and allocating capital to maximize shareholder return. In the fourth quarter of 2016, we delivered against these priorities. Our top global products and new launches powered revenue growth, including, but not limited to, BOTOX, RESTASIS, OZURDEX, Fillers, LINZESS, VRAYLAR, VIBERZI, KYBELLA and Lo LOESTRIN. Our R&D team continued to advance key programs and deliver FDA approvals for new products that change lives. And we made fast progress in our capital deployment program, enhancing short and long term value for our shareholders," said Brent Saunders, chairman and chief executive officer of Allergan.
For financial year 2017, Allergan plc forecasts revenue to be in the range of $15,500 million to $15,800 million. It forecasts adjusted revenue to be in the range of $15,500 million to $15,800 million. It expects diluted loss per share to be in the range of $1.80 to $1.30. It expects diluted earnings per share to be in the range of $15.80 to $16.30 on adjusted basis for the same period.
For the first-quarter, Allergan plc projects revenue to be $3,500 million. It expects adjusted revenue to be $3,500 million for the same period.
Operating cash flow drops significantly
Allergan plc has generated cash of $1,400 million from operating activities during the year, down 68.89 percent or $3,100 million, when compared with the last year.
Cash flow from investing activities was $24,300 million from investing activities during the year as against cash outgo of $37,100 million in the last year.
The company has spent $25,100 million cash to carry out financing activities during the year as against cash inflow of $33,400 million in the last year period.
Cash and cash equivalents stood at $1,700 million as on Dec. 31, 2016, up 54.55 percent or $600 million from $1,100 million on Dec. 31, 2015.
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