Valeant Pharmaceuticals Intl Inc (NYSE:VRX) beat estimates for profits this morning, posting adjusted earnings per share of $2.11, which handily beat the consensus of $1.99 per share. Revenue surged by 3% to $2.06 billion, which was in line with the consensus estimate. Reported earnings per share were 81 cents.

Valeant Pharmaceuticals Beats On Earnings, Ups Guidance

That’s compared to a loss of $2.92 per share in the same quarter a year ago when Valeant took a $305 million restructuring charge, mainly in connection with the Bausch + Lomb acquisition. The drug maker also had a $645 million impairment charge in last year’s third quarter.

Valeant Pharmaceuticals raises guidance

This morning the drug maker also increased its earnings and adjusted profit forecasts, citing better-than-expected performance in the second half of the year. The company’s guidance for the full year moves from between $7.90 and $8.10 per share to between $8.22 and $8.32 per share. The new higher range is significantly higher than the consensus estimate of $8.03 per share.

For the fourth quarter, the company increased its adjusted profit guidance to between $2.45 and $2.55 per share. Valeant expects to see same store organic growth in the double digits.

For 2015, the drug maker also increased its adjusted earnings forecast from $9.65 to $10 a share. Analysts have been projecting earnings of $9.58 per share for 2015.

Will it be enough to woo Allergan?

Bill Ackman has been siding with Valeant in an effort to pursue Botox maker Allergan, Inc. (NYSE:AGN). Other than saying that Valeant’s bid undervalues it, the big complaint Allergan management has with Valeant’s efforts to acquire it has to do with the company’s business model.

One strong area of contention has been in Valeant’s Bausch + Lomb eye care products. However, Valeant said it saw strong demand for its eye care drugs, as well as its skin and neurological treatments. So will this morning’s earnings report be enough to convince Allergan management that a merger wouldn’t be so bad?

It seems highly unlikely, but Ackman and Valeant will undoubtedly continue their push. The current offer on the table is worth $51 billion, an amount that’s been increased twice already. We heard earlier this month that the deal may rise even further, possibly by another $15 per share, which would value Allergan at more than $56 billion.