Valeant Pharmaceuticals Intl Inc (NYSE:VRX) finally released its latest earnings report this morning, posting adjusted earnings of $1.27 per share on $2.37 billion in revenue. Analysts had been expecting earnings per share of $1.37 on $2.39. Valeant said the 9% increase in revenue from the restated amount for last year was mostly due to acquisitions and their growth while under its ownership. On an adjusted basis, the company posted a loss of $1.27 per share or $442.6 million in the year-ago quarter, after restating its earnings.
Valeant (VRX) swings to a loss
On a GAAP basis, Valeant Pharmaceuticals Intl Inc (NYSE:VRX) swung to a loss of $1.08 per share or $373.7 million, compared to last year’s net income of 28 cents per share or $97.7 million. Product sales rose from $2.13 billion last year to $2.34 billion in this year’s first quarter. The drug maker said currency headwinds had a negative impact of $52 million, while divestures and discontinuations had a $22 million negative impact. Organically, revenue declined $289 million year over year.
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The company’s Developed Markets business saw a $186 million increase in revenues, mostly from the Salix acquisition and the purchase of some of Dendreon’s assets. Falling volumes in Valeant Pharmaceuticals Intl Inc (NYSE:VRX)’s neurology and dermatology lineups mostly offset those declines. The company’s Emerging Markets business saw a $15 million increase in revenues, most of which came from the Amoun acquisition. Currency headwinds partially offset that increase.
“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,” said Valeant Chairman and CEO Joseph Papa in a statement. Valeant Pharmaceuticals Intl Inc (NYSE:VRX) has a portfolio of world class brands, a strong new product pipeline and dedicated leaders who are committed to doing what is right and what is necessary to turn this company around by re-engaging our workforce, rebuilding our relationships with prescribers, patients and payors, and regaining the trust of our debtholders and shareholders.”
Valeant (VRX) cuts guidance
Valeant Pharmaceuticals Intl Inc (NYSE:VRX) also reduced its full-year outlook again. The company now expects earnings to be between $6.60 and $7 per share, which marks a significant reduction from the previous guidance of $8.50 to $9.50 per share. The consensus estimate currently stands at $8.47 per share, although as recently as March, Wall Street had been projecting adjusted earnings of $13.75 per share.
The drug maker also cut its revenue guidance for the year to a range of $9.9 billion to $10.1 billion, compared to the previous range of $11 billion to $11.2 billion. The consensus estimate is $10.86 billion.
Shares of Valeant Pharmaceuticals plunged by as much as 13.66% to $24.90 in premarket trading following this morning’s release.