New Products Help Allergan Boost Profits : Earnings: The Irvine company had an annual net of $110.7 million, up from $108.9 million in 1993. Revenue increased 10.3% to $947.2 million.
Buoyed by the introduction of new products, Allergan Inc.'s profit increased last year to $110.7 million, the company said Tuesday.
The Irvine-based maker of skin- and eye-care supplies and surgical instruments said that its 1994 earnings, which came to $1.73 a share, were up from a profit of $108.9 million, or $1.58 a share, for the previous year. Annual worldwide sales were $947.2 million, up 10.3% from $858.9 million.
Analysts said they were pleasantly surprised by the company’s latest results.
“They came in a little better than expected, which is always a nice surprise,” said Steven Gerber, an analyst for the brokerage Oppenheimer & Co. in Los Angeles. “This company now has a long string of steady operating results dating back over three years.”
Gerber said he was impressed by demand for the company’s surgical instruments and for new products in its contact-lens business.
“We think the company continues to do an outstanding job controlling expenses while investing in new product, and we continue to think this company is underappreciated on Wall Street,” Gerber said.
The market gave Allergan’s stock a boost Tuesday, however. The company’s shares gained 75 cents in New York Stock Exchange trading to close at $29.375.
David I. Sobell, an analyst for the brokerage Mabon Securities in New York, said Allergan “has been gaining momentum for several quarters in a row now, and it really reflects the increasing (attention to) business fundamentals.”
“Sales are ramping up,” Sobell said. “The future of new drugs looks very encouraging.”
For the fourth quarter, Allergan posted a profit of $34.8 million, or 54 cents a share, a 14% increase over $30.5 million, or 47 cents a share, for the same period a year earlier. Three-month sales were $270.2 million, up 17% from $231.3 million.
Separately, Allergan said Tuesday that a federal appeals court reaffirmed a lower court ruling that dismissed a patent dispute lawsuit against Allergan by Staar Surgical Co.
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Allergan’s Annual Earnings Improve
Allergan Inc. closed fiscal 1994 with a 1.6% increase in profits and a 10.3% jump in annual revenue over 1993. The Irvine-based company, which develops, manufactures and markets specialty therapeutic products for eye and skin care and neuromuscular disorders, attributed the increases in total annual sales to an 8% rise in international sales. Results from worldwide sales, excluding the impact of foreign currency; figures in millions of dollars, except per-share data:
4th qtr 4th qtr 12 months 12 months 1994 1993 1994 1993 Revenue $270.2 $231.3 $947.2 $858.9 Net income 34.8 30.5 110.7 108.9 Per share .54 .47 1.73 1.58
Source: Allergan Inc.; Researched by VALERIE WILLIAMS-SANCHEZ / Los Angeles Times