Valeant Pharmaceuticals shares plunged to their lowest level in years on Tuesday after its fourth quarter earnings came in below expectations and it warned that the first quarter will be weaker than anticipated.
Advertisement
Shares of Valeant Pharmaceuticals International plummeted on Tuesday morning in the worst day for stock in the history of the company. Track the stock here.
Analysts polled by FactSet expect first-quarter profit of $2.62 per share on revenue of $2.84 billion and a 2016 profit of $13.27 per share on revenue of $12.42 billion.
In Q1 Valeant forecasted earnings of $1.30 to $1.55 a share in comparison to its previous guidance of $2.35 to $2.55 a share. It also slashed the revenue forecast from $2.8-3.1 billion to $2.3-2.4 billion, against the consensus projection of $2.82 billion. Excluding one-time items, earnings were $2.50 per share, far short of per-share earnings of $2.64 that Wall Street expected, according to a survey by Zacks Investment Research. Revenue is pencilled in within the range of $11 billion to $11.2 billion, in comparison to $12.5 billion to $12.7 billion which was previously stated. Valeant is down more than 80 percent from an August peak and more than 60 percent this year.
Shares of Perrigo Company plc Ordinary Shares (NYSE:PRGO) finished up -4.12% to close at $134.37.
In taking a look at the company’s valuation, the firm’s price to earnings ratio stands at 23.2272.
Hedge fund billionaire Bill Ackman just released a letter to investors regarding his position in Valeant Pharmaceuticals, and it is a sight to behold.
Along with lower revenues and profits, the company’s late filing of audited financial statements is a major concern.
Valeant’s long-term debt stood at around $30bn as of last September, a level that reflects its policy of growth by acquisition in recent years.
As of September 30, Valeant had about $30 billion of long-term debt. The Company is engaged in developing manufacturing and marketing a range of branded generic and branded generic pharmaceuticals over-the-counter (OTC) products and medical devices (contact lenses intraocular lenses ophthalmic surgical equipment and aesthetics devices) which are marketed directly or indirectly in over 100 countries.
The company has said it would delay filing its 2015 annual report with regulators while it continues to sort out the impact of its former relationship with Philidor Rx Services.
The Laval, Canada based company’s shares dropped greater than fifty one percent following the news that the company is pulling back from its previous strategy and will not meet its earlier earnings goals and might also default on its debt.
Advertisement
Mr. Pearson, meanwhile, has faced a fresh round of criticism and doubts about the company’s financial disclosures and business practices.
