Valeant Pharmaceuticals released its latest earnings report before opening bell this morning, posting adjusted earnings of $1.55 per share on $2.48 billion in revenue. Analysts had been expecting earnings of $1.75 per share and $2.49 billion in revenue. In last year’s third quarter, the drug maker reported $2.41 per share in adjusted earnings and $2.79 billion in revenue.
Valeant Pharmaceuticals swings to a loss
Valeant posted a net loss of $3.49 per share or losses of $1.22 billion, compared to last year’s earnings of 14 cents per share and net income of $49.5 million. The company said the 11% year over year revenue decline was mostly due to sales of products from existing businesses. Adjusted EBITDA rose to $1.16 billion from the previous quarter’s $1.09 billion and the first quarter’s $1.01 billion.
The company started reporting its results in three segments with this morning’s earnings report. For the Bausch + Lomb/ International segment includes U.S. pharmaceutical products, OTC products and eye health medical device products. Segment revenues rose 4% year over year to $1.16 billion.
Valeant Pharmaceuticals’ Branded Rx business includes U.S. pharmaceutical sales for Salix, the dermatology products, the Canadian products, and oncology, dentistry and women’s health products. Segment revenues declined from $1.1 billion last year to $847 million.
The company’s U.S. Diversified Products segment includes sales of U.S. pharmaceutical products, OTC products, and neurology and other therapeutic classes of medical devices. It also includes U.S. generic product sales. The segment’s revenue declined from $564 million last year to $471 million this year.
Valeant Pharmaceuticals cuts guidance
The company also cut its full-year revenue outlook to a range of $9.55 billion to $9.65 billion, compared to the previous guide of $9.9 billion to $10.1 billion and the consensus estimate of $9.92 billion. Valeant projects full-year earnings of $5.30 to $5.50 per share, compared to the previous outlook of $6.60 to $7 per share and the consensus estimate of $6.45 per share.
Shares of Valeant tumbled in premarket trading this morning, falling by as much as 13.85% to $16.48 heading for an open at their lowest level since June 2010.