Valeant Pharmaceuticals International
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Valeant Pharmaceuticals International beat expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly. Non-GAAP earnings per share grew significantly. GAAP earnings per share dropped to a loss.
Margins shrank across the board.
Valeant Pharmaceuticals International notched revenue of $986.3 million. The 15 analysts polled by S&P Capital IQ predicted sales of $949.3 million on the same basis. GAAP reported sales were 43% higher than the prior-year quarter's $688.5 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 $1.22. The 16 earnings estimates compiled by S&P Capital IQ forecast $1.21 per share. Non-GAAP EPS of $1.22 for Q4 were 30% higher than the prior-year quarter's $0.94 per share. GAAP EPS were -$0.29 for Q4 versus $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 70.9%, 370 basis points worse than the prior-year quarter. Operating margin was 17.8%, 940 basis points worse than the prior-year quarter. Net margin was -9.0%, much worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.09 billion. On the bottom line, the average EPS estimate is $1.28.
Next year's average estimate for revenue is $4.58 billion. The average EPS estimate is $5.61.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 194 members out of 219 rating the stock outperform, and 25 members rating it underperform. Among 73 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 66 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 $69.88.
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