Valeant Pharmaceuticals International
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Valeant Pharmaceuticals International beat expectations on revenues and earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share increased.
Margins improved across the board.
Valeant Pharmaceuticals International booked revenue of $688.5 million. The 15 analysts polled by S&P Capital IQ predicted a top line of $667.4 million on the same basis. GAAP reported sales were 34% higher than the prior-year quarter's $514.6 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.94. The 16 earnings estimates compiled by S&P Capital IQ averaged $0.85 per share on the same basis. GAAP EPS were $0.18 for Q4 versus -$0.10 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 73.2%, 440 basis points better than the prior-year quarter. Operating margin was 21.2%, 770 basis points better than the prior-year quarter. Net margin was 8.1%, 1,410 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $796.4 million. On the bottom line, the average EPS estimate is $0.95.
Next year's average estimate for revenue is $3.31 billion. The average EPS estimate is $4.08.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 182 members out of 204 rating the stock outperform, and 22 members rating it underperform. Among 68 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 63 give Valeant Pharmaceuticals International a green thumbs-up, and five 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 $57.71.
The drug and health-care investing landscape is littered with also-rans and a few major winners. Is Valeant Pharmaceuticals International the right stock for you? Read "Discover the Next Rule-Breaking Multibagger" to learn about a company Fool co-founder David Gardner believes will be a phenomenal success over the next few years. Click here for instant access to this free report.
- Add Valeant Pharmaceuticals International to My Watchlist.
Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.