Valeant Pharmaceuticals International Goes Red
Feb 28th 2013 8:01PM
Updated Feb 28th 2013 8:10PM
Valeant Pharmaceuticals International (NYS: VRX) reported earnings on Feb. 28. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Valeant Pharmaceuticals International beat expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly. Non-GAAP earnings per share grew significantly. GAAP earnings per share dropped to a loss.
Margins shrank across the board.
Valeant Pharmaceuticals International notched revenue of $986.3 million. The 15 analysts polled by S&P Capital IQ predicted sales of $949.3 million on the same basis. GAAP reported sales were 43% higher than the prior-year quarter's $688.5 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.22. The 16 earnings estimates compiled by S&P Capital IQ forecast $1.21 per share. Non-GAAP EPS of $1.22 for Q4 were 30% higher than the prior-year quarter's $0.94 per share. GAAP EPS were -$0.29 for Q4 versus $0.17 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 70.9%, 370 basis points worse than the prior-year quarter. Operating margin was 17.8%, 940 basis points worse than the prior-year quarter. Net margin was -9.0%, much worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.09 billion. On the bottom line, the average EPS estimate is $1.28.
Next year's average estimate for revenue is $4.58 billion. The average EPS estimate is $5.61.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 194 members out of 219 rating the stock outperform, and 25 members rating it underperform. Among 73 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 66 give Valeant Pharmaceuticals International a green thumbs-up, and seven give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Valeant Pharmaceuticals International is outperform, with an average price target of $69.88.
- Add Valeant Pharmaceuticals International to My Watchlist.
The article Valeant Pharmaceuticals International Goes Red originally appeared on Fool.com.Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.