Valeant Pharma (VRX) reported earnings on Tue 8 Nov 2016 (b/o)

** charts before earnings **

 

** charts after earnings **

Valeant Pharma misses by $0.21, misses on revs; cuts FY16 guidance:

• Reports Q3 (Sep) earnings of $1.55 per share, excluding non-recurring items, $0.21 worse than the Capital IQ Consensus of $1.76; revenues fell 11.0% year/year to $2.48 bln vs the $2.51 bln Capital IQ Consensus.
• "This past quarter, we made further progress toward establishing the new Valeant," said Joseph C. Papa, Chairman and Chief Executive Officer. "We have, where appropriate, begun to centralize some parts of the business, and hired two key senior executives: Paul Herendeen, Chief Financial Officer, and Dr. Louis Yu, Chief Quality Officer. We also have started to present our financial results under three operating and reportable segments, which we believe will help clarify areas of strength and provide additional transparency. While we have revised our expectations for the remainder of 2016, I continue to be encouraged by the commitment of our employees who work each day toward meeting our mission of helping improve people's lives through our healthcare products."
• Adjusted EBITDA (non-GAAP) for the third quarter of 2016 came in at $1.16 billion, an improvement over second quarter results of $1.09 billion and first quarter results of $1.01 billion.
• GAAP Cash flow from operations was $570 million in the third quarter of 2016 as compared to $733 million in the third quarter of 2015. On a sequential basis, GAAP Cash flow from operations was $557 million in the first quarter of 2016, $448 million in the second quarter and $570 million in the third quarter.
• Co lowers guidance for FY16, sees EPS of $5.30-5.50 (Prior $6.60-7.00) vs. $6.49 Capital IQ Consensus Estimate; sees FY16 revs of $9.55-9.65 bln (Prior $9.9-10.1 bln) vs. $9.93 bln Capital IQ Consensus Estimate, sees Adj-EBITDA of $4.25-4.35 bln (Prior $4.8-4.95 bln)