When it comes to earnings per share, Allergan also disappointed by 3 cents, yet it still rose 15 percent higher than the same quarter last year. What analysts and the market look at when it comes to Allergan is how the MAP Pharmaceuticals acquisition and last December's $350 million purchase of SkinMedica will impact upon both sales and earnings in the quarter just ahead. It's a very optimistic outlook tempered by modest guidance.
Allergan still can make money on its Botox cosmetic and therapeutic products, which the company states will see a sales increase of nearly 10 percent in 2013. You can read all about its fourth-quarter 2012 operating results by visiting the company's consciously creative website.
Looking at the company's five-year chart is an exercise in illustrating the success of this Irvine, Calif.-based health-care colossus founded back in 1948. It also shows the growth of its trailing-twelve-month free cash flow that allowed it to make the two accretive acquisitions totaling over $1.3 billion.
The stock appears to be consolidating after its amazing recent peak. On Thursday, Allergan shares pulled back by more than 2 percent on higher than normal volume. Again, no problem, because analysts from Citigroup raised the price target for Allergan up to $124 citing strong growth in the company's core franchises, and kept a Buy rating on the stock.
Earlier, Argus Research lifted its target on Allergan to $118 on the premise that the company reported solid sales and earnings growth and has a strong pipeline. The firm expects the company to generate double-digit earnings growth during the next three to five years, driven by a number of important factors. It maintains a Buy rating on the shares.
Do your own due diligence before investing in Allergan. From a technical basis it wouldn't surprise this analyst to see the stock head closer to $100 before heading higher, as this technical chart suggests based on the Bollinger Bands, the 200-day moving average line and the Relative Strength Indicator. The RSI may be in the process of going a bit lower.
Allergan is a company that is solving problems with a prescient, new level of consciousness and the leadership acumen that will "ring the register" time and time again in the months ahead.
—By TheStreet.com Contributor Marc Courtenay
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At the time of publication, Marc Courtenay had no position in any of the stocks mentioned.