Valeant Pharmaceuticals (VRX) Tops Estimates

Valeant Pharmaceuticals International, Inc. (VRX) shares are up $27.07 to $200.33 in morning trading Monday after the company reported its fourth quarter earnings results.

The multinational specialty pharmaceutical firm reported non-GAAP earnings of $2.58 per share on revenues of $2.28 billion, up 10.5% from a year ago. Analysts were expecting EPS of $2.56 on revenues of $2.23 billion. Total 2014 revs came in at $8.3 billion; an increase of 43% over the prior year.

For Q1’15, VRX provided EPS guidance of at least $2.30 versus consensus of $2.27 per share. Separately, the Canadian drug maker today announced reaching a definitive agreement to acquire all of the outstanding common stock of Salix for $158.00 per share in cash.

On valuation measures, Valeant Pharmaceuticals International Inc. shares, which currently have an average 3-month trading volume of 1.9 million shares, trade at a trailing-12 P/E of 135.27. The median Wall Street price target on the name is $183.00 with a high target of $200.00. Currently ticker boasts 16 ‘Buy’ endorsements, compared to 3 ’Holds’ and no ‘Sell’.

Profitability-wise, VRX has a t-12 profit and operating margin of 6.25% and 27.44%, respectively. The $67.25 billion market cap company reported $841.90 million in cash vs. $16.27 billion in debt in its most recent quarter.

VRX currently prints a one year return of about 17%, and a year-to-date return of around 21%.

The chart below shows where the equity has traded over the last 52 weeks.

Valeant Pharmaceuticals International Inc. develops pharmaceuticals, over-the-counter products, and medical devices in the areas of eye health, dermatology, and neurology therapeutic classes worldwide. The firm was founded in 1983 and is headquartered in Laval, Canada.

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