Valeant Pharma (VRX) Misses Q4 EPS by 11c; Cuts Q1, FY16 Outlook

Valeant Pharma (NYSE: VRX) reported Q4 EPS of $2.50, $0.11 worse than the analyst estimate of $2.61. Revenue for the quarter came in at $2.8 billion versus the consensus estimate of $2.75 billion.

GUIDANCE:

Valeant Pharma sees Q1 2016 EPS of $1.30 - $1.55, versus prior guidance of $2.35 - $2.55 and the consensus of $2.63. Valeant Pharma sees Q1 2016 revenue of $2.3 - $2.4 billion, versus prior guidance of $2.8 - $3.1 billion and the consensus of $2.82 billion.

Valeant Pharma sees FY2016 EPS of $9.50 - $10.50, versus prior guidance of $13.25 - $13.75 and the consensus of $13.24. Valeant Pharma sees FY2016 revenue of $11.0 - $11.2 billion, versus prior guidance of $12.5 - $12.7 billion and the consensus of $12.41 billion.

Next Four Quarters (Second Quarter 2016 – First Quarter 2017) Guidance

• Total Revenue expected to be $11.6 - $11.8 billion
• Adjusted EPS (non-GAAP) expected to be $10.75 - $11.25
• Adjusted EBITDA (non-GAAP) expected to be ~$6.2 - $6.6 billion. (NOTE: The company updated its outlook to ~$6.0 billion.)

"The challenges of the past few months are not yet behind us and our goal for 2016 is to better balance our priorities across all of our constituencies - physicians, patients, employees, payors, debt holders and shareholders," said J. Michael Pearson, chief executive officer. "I want to again thank all our dedicated employees, as well as the entire management team, for their diligence throughout this difficult time to ensure that the business remains solid."

Pearson continued, "In discussion with the Board, we have assumed lower growth in our U.S. dermatology, gastrointestinal, and woman's health portfolios, as well as certain geographies like Western Europe, while keeping our expenses largely unchanged. We plan to work hard to improve these metrics by delivering higher revenues and reducing our costs and, if successful, we hope to beat this guidance in the quarters to come. In the meantime, we are comfortable with our current liquidity position and cash flow generation for the rest of the year, and remain well positioned to meet our obligations."

For earnings history and earnings-related data on Valeant Pharma (VRX) click here.

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