Valeant Pharmaceuticals International
The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Valeant Pharmaceuticals International met expectations on revenues and beat slightly on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share dropped significantly.
Gross margins grew, operating margins grew, net margins dropped.
Valeant Pharmaceuticals International logged revenue of $884.1 million. The 15 analysts polled by S&P Capital IQ predicted sales of $875.9 million on the same basis. GAAP reported sales were 47% higher than the prior-year quarter's $600.6 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 $1.15. The 18 earnings estimates compiled by S&P Capital IQ predicted $1.13 per share. GAAP EPS of $0.02 for Q3 were 85% lower than the prior-year quarter's $0.13 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 74.0%, 110 basis points better than the prior-year quarter. Operating margin was 25.8%, 130 basis points better than the prior-year quarter. Net margin was 0.9%, 590 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $978.2 million. On the bottom line, the average EPS estimate is $1.30.
Next year's average estimate for revenue is $3.50 billion. The average EPS estimate is $4.51.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 186 members out of 209 rating the stock outperform, and 23 members rating it underperform. Among 70 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 63 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 $65.38.
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