Valeant Pharma (VRX) reported earnings on Tue 3/15/16 (b/o)

** charts before earnings **

 

** charts after earnings **

  

**  2 weeks later **

Valeant Pharma misses by $0.12, reports revs in-line; offers downside Q1/FY16 EPS, revs guidance :

Reports Q4 (Dec) earnings of $2.50 per share, $0.12 worse than the Capital IQ Consensus of $2.62; revenues rose 22.3% year/year to $2.79 bln vs the $2.76 bln Capital IQ Consensus.

• Co lowers guidance for Q1, sees EPS of $1.30-1.55 (Prior $2.35-2.55) vs. $2.66 Capital IQ Consensus Estimate; sees Q1 revs of $2.3-2.4 bln ($2.8-3.1 bln) vs. $2.85 bln Capital IQ Consensus Estimate.
• Co lowers guidance for FY16, sees EPS of $9.50-10.50 (Prior $13.25-13.75) vs. $13.48 Capital IQ Consensus Estimate; sees FY16 revs of $11.0-11.2 bln (Prior $12.5-12.7 bln) vs. $12.54 bln Capital IQ Consensus Estimate.
• The co also offered guidance for the next four quarters (2Q16 - 1Q17), saying it expects revs to be $11.6-11.8 bln, and EPS of $10.75-11.25
• "The challenges of the past few months are not yet behind us and our goal for 2016 is to better balance our priorities across all of our constituencies - physicians, patients, employees, payors, debt holders and shareholders...In discussion with the Board, we have assumed lower growth in our U.S. dermatology, gastrointestinal, and woman's health portfolios, as well as certain geographies like Western Europe, while keeping our expenses largely unchanged. We plan to work hard to improve these metrics by delivering higher revenues and reducing our costs and, if successful, we hope to beat this guidance in the quarters to come. In the meantime, we are comfortable with our current liquidity position and cash flow generation for the rest of the year, and remain well positioned to meet our obligations."

Worth noting that while Valeant's guidance for Q1 and 2016 have been reduced from prior expectations, the company did announce upon the return of Michael Pearson that it was withdrawing all prior guidance.