Valeant Pharmaceuticals Intl Inc (NYSE:VRX) had an incredibly rough day on the market yesterday, and for good reason. The company reported its earnings for the third quarter, missing expectations on all fronts. Today, we’ll talk about what we saw from its earnings, how the stock reacted to the news, and what we can expect to see from VRX ahead. So, let’s get right to it…
VRX Misses The Mark With Earnings
As mentioned above, Valeant Pharmaceuticals Intl Inc (NYSE:VRX) released its financial results for the third quarter yesterday. Here’s what we saw from the report.
Onypix/Shutterstock.com
– Earnings Per Share – In terms of earnings per share, VRX missed the mark in a big way. During the quarter, analysts expected that the company would generate earnings in the amount of $1.75 per share. However, the company actually reported earnings of $1.55 per share, missing expectations in a big way.
– Revenue – In terms of revenue, things didn’t get much better for VRX, as the company missed the mark there as well. During the third quarter, analysts expected that the company would generate revenue in the amount of $2.49 billion. However, the company actually reported revenue of $2.48 billion.
Along with the earnings was a statement issued by Joseph Papa, the Chairman and CEO at VRX. Here’s what he had to say…
“This past quarter, we made further progress toward establishing the new Valeant…. We have, where appropriate, begun to centralize some parts of the business, and hired two key senior executives: Paul Herendeen, Chief Financial Officer, and Dr. Louis Yu, Chief Quality Officer. We also have started to present our financial results under three operating and reportable segments, which we believe will help clarify areas of strenght and provide additional transparency. While we have revised our expectations for the remainder of 2016, I continue to be encouraged by the commitment of our employees who work each day toward meeting our mission of helping improve people’s lives through our healthcare products.”
How The Market Reacted To The News
At the end of the day, investors are going to react to poor results in a negative way. That’s exactly what we saw from the stock yesterday. VRX closed the session at $14.98, after a loss of $4.05 per share or 21.28%.
What I’m Expecting To See Ahead
As each day passes, Valeant Pharmaceuticals Intl Inc (NYSE:VRX) is looking worse and worse. While there may be some opportunity here, that opportunity is overshadowed by pending legal actions as well as poor results. All in all, VRX is a big risk at the moment in my opinion.
Follow Bausch Health Companies Inc. (NYSE:BHC)
Follow Bausch Health Companies Inc. (NYSE:BHC)
Never Miss The News Again
Do you want real-time, actionable news delivered to your inbox? Join the CNA Finance mailing list below!
Note: This article was written by Joshua Rodriguez, owner and founder of CNA Finance. If you would like to connect with Joshua, you can do so by emailing him at CNAFinanceHelp@gmail.com!
