Allergan’s strong Q1 overshadowed by Valeant buyout questions

The company’s Q1 sales came in at $US1.64 billion, just ahead of the expected $1.61 billion. Earnings were a solid beat at $1.18 compared with consensus estimates of $1.12.Allergan hiked its full-year earnings guidance, putting the top end of the range at $5.73, up from $5.48.Investors aren’t focused on those numbers, though. The forecast would be moot if Valeant’s buyout succeeds and the closing comes quickly.The company said in a statent that its board is weighing the Valeant offer and will pursue the course of action that it believes is in the best interests of Allergan’s shareholders. And it rinded investors that it adopted a one-year poison pill late last month.One thing the company did not do was announce a cost squeeze, meaning the company appears to have chosen not to make drastic cost cuts to donstrate its operating leverage.Investors aren’t focused on those numbers, though. The forecast would be moot if Valeant’s buyout succeeds and the closing comes quickly.The company said in a statent that its board is weighing the Valeant offer and will pursue the course of action that it believes is in the best interests of Allergan’s shareholders. And it rinded investors that it adopted a one-year poison pill late last month.One thing the company did not do was announce a cost squeeze, meaning the company appears to have chosen not to make drastic cost cuts to donstrate its operating leverage.