VRX Stock Falls After Forecast Cut
Valeant Pharmaceuticals (VRX) shares are down more than 10% to $25.79, in pre-market trading on Tuesday following the release of the drugmaker’s first quarter earnings results.
The Laval, Quebec-based company reported 1Q16 non-GAAP EPS of $1.27, below the $1.37 per share analysts were expecting, and 46% lower the $2.34 per share the company reported during the same period last year.
Revenue for the first quarter of 2016 increased 9.3% YoY to $2.37 billion, beating analysts $2.34 billion expectations for the period. Net loss came in at $373.7 million, or ($1.08) per diluted share as compared to net income of $97.7 million, or $0.28 per diluted share a year ago.
“The first quarter’s results reflect, in part, the impact of significant disruption this organization has faced over the past nine months,” new Chief Executive Officer Joseph Papa said in a statement. “This has been a difficult period for Valeant and its stakeholders, and while there are some challenges to work through in certain business operations in 2016, such as our U.S. dermatology unit, the majority of our businesses are performing according to expectations. While we recognize that we did not meet the timeline for filing our first quarter results, with our filing expected this week, we will be current in our financial reporting. We have made progress toward stabilizing the organization over the past few months, and we expect to file our financial results in a timely manner going forward.”
Valeant also offered guidance for full-fiscal year 2016, saying revenue should be somewhere between $9.9 billion and $10.1 billion, above the $10.92 billion Wall Street was anticipating. The management also gave its bottom line range of $6.60 – $7.00 per share, against projections of $8.51 per share.
Valeant shares have nosedived 72 percent year-to-date and 90 percent year-over-year amid U.S. federal investigations, an accounting scandal and scrutiny over drug price increases.