Valeant Pharmaceuticals International Inc. (NYSE: VRX)
Valeant Pharmaceutical International Inc. reported positive first-quarter earnings results that caused its shares to gain 5.2% before the bell Tuesday. The company revenue figures surpassed the expectations of analysts, ultimately sending the shares on a run up.
Investors also seem to have been excited by news that the pharmaceutical giant had raised its revenue guidance for 2018 during the release of the earnings report. At the time of writing this article, VRX shares were trading at $20.82 after gaining $2.57, or 14.15%.
The company also said it will change its name in July and will from then on be known as Bausch Health Companies Inc. The move is seen as an attempt by the company to steer away from probes into its accounting practices and predatory drug pricing allegations.
VRX Earnings & Outlook
VRX said it made a loss of $7.68 a share, or $2.69 billion in the first three months of 2018. The company made posted earnings of $1.79 a share, or $628 million in the same period last year.
The consensus analyst estimate for Q1 of 2018 was $0.60 earnings per share. Revenue stood at $1.995 billion to finish above the analyst consensus of $1.949 billion. It however dropped from the $2.109 billion that the company posted in the same quarter last year.
Bausch+Lomb sales finished below the consensus, while US diversified sales and Branded Rx sales finished above the consensus analyst estimate. Valeant also raised its 2018 revenue guidance from $8.10B – $8.30B to $8.15B – $8.35B.
$VRX has been on a huge selloff the past couple of years to the point of almost reaching penny stock land but they have really turned things around and after this earnings they should have enough momentum to keep going higher.
Valeant Pharmaceuticals’ CEO Comments
VRX Chairman and Chief Executive Officer Joseph C. Papa released a statement saying the following: “Our first-quarter 2018 results demonstrate that we are making significant progress in our turnaround. For the first time since 2015, the company delivered overall organic revenue growth that tracked above expectations and was driven by our Branded Rx and Bausch + Lomb/International segments. As a result, we are raising our full-year revenue and Adjusted EBITDA (non-GAAP) guidance ranges to reflect our strong performance in the first quarter.”
Valeant Pharmaceuticals International Inc. Company Profile
Valeant Pharmaceuticals International, Inc. is a multinational medical device and specialty pharmaceutical firm that markets, develops, and manufactures a range of over-the-counter products, medical devices, and pharmaceuticals.
The company was established in 1983 and its head offices are based in Laval, Canada. The firm has three segments of operation: U.S Diversified Products, Branded Rx, and The Bausch + Lomb/International. The U.S Diversified division offers over-the-counter products, medical device products and pharmaceutical products in the areas of aesthetics, therapeutic and neurology.
The Bausch + Lomb/International division offers medical device products, over-the-counter products and pharmaceutical products, primarily consisting of Bausch+Lomb products.
The segment focuses on the surgical, vision care, ophthalmology Rx and consumer products in the US; and generic pharmaceutical products, pharmaceutical products, medical device products, Bausch + Lomb products, over-the-counter products in Latin America, Canada, Australia, Europe, New Zealand, Asia, Middle East and Africa. The Branded Rx division avails dermatological and gastrointestinal products in the US. –Reuters
