Company Update (NYSE:VRX): Valeant Pharmaceuticals Intl Inc Provides Financial Guidance Update


Valeant Pharmaceuticals Intl Inc (NYSE:VRX) announced updated financial guidance for the fourth quarter and full year 2015 as well as new guidance for full year 2016.

“We are very excited about the strong future given our broad portfolio of brands, our upcoming launch products and our robust R&D pipeline,” said J. Michael Pearson, chairman and chief executive officer. “We believe that we are entering a new era of growth and opportunity as we continue to build and grow our businesses around the world and deliver medicines and products at affordable prices that improve the lives of patients.”

Full Year 2016 Guidance

  • Total Revenue $12.5 – $12.7 billion
  • Adjusted EBITDA* $6.9 – $7.1 billion
  • Adjusted non-GAAP EPS* $13.25 -$13.75
  • Double Digit Same Store Sales Organic Growth – primarily driven through volume
  • Expect to reduce debt by ~$2.25 billion, including mandatory payments and maturities
  • Expect net leverage ratio to be ~4.0 times pro forma adjusted EBITDA by the end of 2016

Q4 2015 Revised Guidance

  • Total Revenues previously $3.25 – $3.45 billion now $2.7 – $2.8 billion
  • Adjusted EPS* previously $4.00 – $4.20 now $2.55 -$2.65
  • Adjusted Cash Flow from Operations* previously greater than $1.0 billion, now greater than $600 million

Full Year 2015 Revised Guidance

  • Total Revenue previously $11.0 – $11.2 billion now $10.4 -$10.5 billion
  • Adjusted EPS* previously $11.67 – $11.87 now $10.23 -$10.33
  • Adjusted Cash Flow from Operations* previously greater than $3.35 billion, now greater than $2.95 billion

The company is hosting an Investor Day today from 8:00 a.m. to 12:30 p.m. ET to discuss the updated and new financial guidance and provide an overview of select business operations and R&D programs. (Original Source)

Shares of Valeant Pharmaceuticals International closed yesterday at $109.59, up $15.45 or 16.41%. VRX has a 1-year high of $263.81 and a 1-year low of $69.33. The stock’s 50-day moving average is $90.53 and its 200-day moving average is $187.22.

On the ratings front, Valeant Pharmaceuticals¬†has been the subject of a number of recent research reports. In a report released yesterday, Morgan Stanley analyst David Risinger maintained a Hold rating on VRX. Separately, on the same day, BMO’s Alex Arfaei reiterated a Hold rating on the stock and has a price target of $133.

According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, David Risinger and Alex Arfaei have a total average return of 3.7% and 5.4% respectively. Risinger has a success rate of 64.0% and is ranked #961 out of 3632 analysts, while Arfaei has a success rate of 67.2% and is ranked #663.

The street is mostly Bullish on VRX stock. Out of 21 analysts who cover the stock, 14 suggest a Buy rating , 6 suggest a Hold and one recommends to Sell the stock. The 12-month average price target assigned to the stock is $161.50, which represents a potential upside of 47.4% from where the stock is currently trading.

Valeant Pharmaceuticals International Inc is a specialty pharmaceutical and medical device company that develops, manufactures, and markets a range of generic and branded generic pharmaceuticals, over-the-counter products and medical devices.

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