Valeant Pharmaceuticals International Hits Estimates in Solid Quarter

Seth Jayson, The Motley Fool
Updated

Valeant Pharmaceuticals International (NYS: VRX) reported earnings on Thursday. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 30 (Q2), Valeant Pharmaceuticals International met expectations on revenues and met expectations on earnings per share.

Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share shrank to a loss.


Gross margins expanded, operating margins contracted, and net margins shrank.

Revenue details
Valeant Pharmaceuticals International tallied revenue of $820.1 million. The 16 analysts polled by S&P Capital IQ foresaw a top line of $824.1 million on the same basis. GAAP reported sales were 35% higher than the prior-year quarter's $609.4 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 $1.01. The 19 earnings estimates compiled by S&P Capital IQ forecast $1.00 per share. GAAP EPS were -$0.07 for Q2 compared to $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 74.4%, 20 basis points better than the prior-year quarter. Operating margin was 24.0%, 660 basis points worse than the prior-year quarter. Net margin was -2.6%, 1,180 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $894.0 million. On the bottom line, the average EPS estimate is $1.14.

Next year's average estimate for revenue is $3.52 billion. The average EPS estimate is $4.54.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 185 members rating the stock outperform and 20 members rating it underperform. Among 63 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 56 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 $61.29.

The article Valeant Pharmaceuticals International Hits Estimates in Solid Quarter originally appeared on Fool.com.

Seth Jaysonhad 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. The Motley Fool has no positions in the stocks mentioned above. 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.

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