Valeant Pharmaceuticals International
The 10-second takeaway
For the quarter ended March 31 (Q1), Valeant Pharmaceuticals International missed slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. Non-GAAP earnings per share expanded. GAAP loss per share expanded.
Gross margins expanded, operating margins dropped, net margins shrank.
Valeant Pharmaceuticals International logged revenue of $1.07 billion. The 12 analysts polled by S&P Capital IQ looked for revenue of $1.09 billion on the same basis. GAAP reported sales were 25% higher than the prior-year quarter's $856.1 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 $1.30. The 17 earnings estimates compiled by S&P Capital IQ predicted $1.25 per share. Non-GAAP EPS of $1.30 for Q1 were 14% higher than the prior-year quarter's $1.14 per share. GAAP EPS were -$0.09 for Q1 compared to -$0.04 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 71.9%, 450 basis points better than the prior-year quarter. Operating margin was 16.5%, 420 basis points worse than the prior-year quarter. Net margin was -2.6%, 110 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.08 billion. On the bottom line, the average EPS estimate is $1.31.
Next year's average estimate for revenue is $4.59 billion. The average EPS estimate is $5.68.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 200 members out of 227 rating the stock outperform, and 27 members rating it underperform. Among 77 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 70 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 $77.67.
- 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 position in any of the stocks mentioned. 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.