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.
- 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. The Motley Fool has no positions in the stocks mentioned above. 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.
More from The Motley Fool
Valeant Pharmaceuticals' Stellar 43% Gain in 2017, Explained
Wall Street rewards the embattled Valeant after the company met numerous goals last year.
3 Compelling Reasons Valeant Pharmaceuticals Exploded Higher by 24% in December
Valeant took another step forward on its road to redemption, but it still has a long walk ahead.
Billionaire George Soros Is Betting Big Against These 2 Pharma Stocks
Can Valeant and Teva rebound? George Soros' namesake fund doesn't seem to think so.