Valeant Pharmaceuticals International Goes Red

Just the facts, Fool.

Valeant Pharmaceuticals International (NYSE: VRX) reported earnings on Feb. 28. Here are the numbers you need to know.

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.

Revenue details
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 details
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.

Margin details
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.

Looking ahead
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.

Investor sentiment
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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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 position in any of the stocks mentioned. 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.

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