Valeant Pharmaceuticals International Beats on Both Top and Bottom Lines
Valeant Pharmaceuticals International (NYS: VRX) reported earnings on May 3. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), Valeant Pharmaceuticals International beat expectations on both revenue and earnings per share.
Compared to the prior-year quarter, revenue expanded significantly, while GAAP earnings per share dropped to a loss.
Margins shrank across the board.
Valeant Pharmaceuticals International tallied revenue of $856.1 million. The 15 analysts polled by S&P Capital IQ hoped for sales of $796.7 million on the same basis. GAAP reported sales were 52% higher than the prior-year quarter's $565 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 $1.14. The 18 earnings estimates compiled by S&P Capital IQ predicted $0.96 per share. GAAP EPS were -$0.04 for Q1 against $0.02 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 67.4%, 740 basis points worse than the prior-year quarter. Operating margin was 20.7%, 1,980 basis points worse than the prior-year quarter. Net margin was -1.5%, 260 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $852.2 million. On the bottom line, the average EPS estimate is $1.09.
Next year's average estimate for revenue is $3.42 billion. The average EPS estimate is $4.41.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 187 members rating the stock outperform and 23 members rating it underperform. Among 65 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 58 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 $60.59.
The drug and health-care investing landscape is littered with also-rans and a few major winners. Is Valeant Pharmaceuticals International the right stock for you? Read "Discover the Next Rule-Breaking Multibagger" to learn about a company David Gardner believes will be a phenomenal success over the next few years. Click here for instant access to this free report.
- Add Valeant Pharmaceuticals International to My Watchlist.
At the time this article was published 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 ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. 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.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.