Valeant Pharmaceuticals International
The 10-second takeaway
For the quarter ended June 30 (Q2), Valeant Pharmaceuticals International met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share shrank to a loss.
Gross margins expanded, operating margins contracted, and net margins shrank.
Valeant Pharmaceuticals International tallied revenue of $820.1 million. The 16 analysts polled by S&P Capital IQ foresaw a top line of $824.1 million on the same basis. GAAP reported sales were 35% higher than the prior-year quarter's $609.4 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.01. The 19 earnings estimates compiled by S&P Capital IQ forecast $1.00 per share. GAAP EPS were -$0.07 for Q2 compared to $0.17 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 74.4%, 20 basis points better than the prior-year quarter. Operating margin was 24.0%, 660 basis points worse than the prior-year quarter. Net margin was -2.6%, 1,180 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $894.0 million. On the bottom line, the average EPS estimate is $1.14.
Next year's average estimate for revenue is $3.52 billion. The average EPS estimate is $4.54.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 185 members rating the stock outperform and 20 members rating it underperform. Among 63 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 56 give Valeant Pharmaceuticals International a green thumbs-up, and seven give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Valeant Pharmaceuticals International is outperform, with an average price target of $61.29.
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