Shares of Valeant Pharmaceuticals International, Inc. (NYSE:VRX) touched a new three-and-a-half-year low Tuesday morning after the drugmaker reported a preliminary adjusted net profit for Q4 2015 that trailed the Street consensus, while revenues came in line; and lowered its guidance for Q1 and full year 2016.
Net loss for the quarter was $336.4 million, or $0.98 loss per share; down from $534.9 million, or $1.56 per share in Q4 2014. On an adjusted basis, the company reported a net profit of $2.50 per share, down from $2.58 per share in the prior year period and lower than the $2.62 per share Street estimate provided by Capital IQ.
Total revenues were $2.79 billion, up from $2.3 billion reported for the same period last year and came in line with the Street estimate.
For Q1, the company now expects adjusted earnings to range from $1.30 to $1.55 per share on revenues of between $2.3 billion and $2.4 billion, compared to previous guidance of $2.35 to $2.55 of EPS on $2.8 billion to $3.1 billion of revenues. The Street estimates were $2.63 in earnings and $2.82 billion in revenues, respectively.
For 2016, the company now expects adjusted earnings to range from $9.50 to $10.50 per share on revenues of between $11 million and $11.2 billion, compared to previous guidance of $13.25 to $13.75 of EPS on revenues of between $12.5 billion and $12.7 billion. The Street estimates were $13.31 in earnings and $12.41 billion in revenues, respectively.
Additionally, Valeant said it will delay filing its 10-K for FY15 pending completion of an ongoing review of certain historical financial statements. As the company has not filed its 10-K by March 15, it is in breach of the reporting covenant in the indentures and the trustee or holders of at least 25% of any series of notes may deliver a notice of default. Valeant will have 60 days from the date of receipt of a notice of default to file the Form 10-K and thereby cure the default.
If Valeant does not cure the default by the end of the 60-day period, the notes may be accelerated by the trustee or holders of at least 25% of the series of notes that provided the notice of default. The acceleration of one series of notes could result in a cross acceleration to other outstanding series of notes.
Valeant Pharmaceuticals International, Inc. (NYSE:VRX) shares of are trading -41.4274% on the news and in the range of $40.00 – $53.90 during the current trading session. In taking a look at which direction the stock might be headed, investors often look to brokerage analysts who cover the stock. Sell-side research firms on Wall Street currently have a consensus one year price target of 137.6500 on the stock. This is according to brokerage analysts polled by Thomson Reuters First Call. The sell-side analysts are projecting earnings per share of 2.6300 for the next fiscal quarter. For the current year, analysts are predicting earnings of 10.2700 per share according to First Call.
In looking at where the stock is trading on a technical level, the stock is trading -50.6139% away from its 50 day moving average of 81.8823. Based on the most recent available data, the equity is -84.6713% off of its 52-week high of 263.8100 and +1.0962% away from its 52-week low which is 40.0000.
In taking a look at the company’s valuation, the firm’s price to earnings ratio stands at 23.2272. This is a crucial indicator investors watch as higher ratios compared to peers, would suggest higher future earnings growth potential for the stock. The price to current year EPS estimates from research analysts currently stands at 3.9375. In looking further ahead, potential investors should note that the company’s price to next year’s EPS estimates is 3.0543.
Today, the stock opened at 53.4500 and the last bid at the time of writing stood at 40.4385. During the session thus far, the equity dipped down to 40.0000 and touched 53.9000 as the high point. Valeant Pharmaceuticals Interna has a market cap of 13.87B and has seen an average daily volume of 9494850 over the past three months.