Valeant Pharma (VRX) EBITDA Was North of $1B, Which Was Better than Feared - Evecore ISI Raffat
- Top 10 News for 12/2: Crude Rips on OPEC Cut; Starbucks' Schultz Steps Down; Nonfarm Payrolls Flat in Nov.
- Unemployment Rate Drops to 4.6%
- Bond yields slip on U.S. jobs data, euro steady before Italy vote
- Alibaba (BABA) Founder Jack Ma Discuss Plans to Retire; 'I Don't Want to Die at the Office'
- Starbucks Coffee (SBUX) CEO Howard Schultz to Step Down, Appointed Executive Chairman; Kevin Johnson New CEO
Get instant alerts when news breaks on your stocks. Claim your 2-week free trial to StreetInsider Premium here.
Evecore ISI analyst Umer Raffat weighed in on Valeant Pharma (NYSE: VRX) quarter. He notes that based on his investor conversations, buyside sentiment had MASSIVELY shifted when the stock moved from ~$30 to <$20.
He said there was fears that Q3 EBITDA may be <$1B and that didn't happen - Valeant tracked at $1.16B.
He said the new 2016 EBITDA guidance ($4.25-$4.35B) appears a touch below consensus, "but even if you straight-line Q3 EBITDA into Q4, you get to consensus-like $4.4-4.5B (and recall there are price increases + more SG&A cuts in Q4)."
Elsewhere, he notes cash flow conversion better in Q3 vs Q2.
On products: Xifaxan tracked at $273M this quarter (vs $200-208M range for last quarters). In addition, new Xifaxan formulation entering Ph 3 in 2H17 as per slides (v impt from lifecycle mgmt/patent perspective). Also, Raffat notes they may be seeing early signs of improvement in derm: Jublia came out at $44M in Q3 (Vs $31M in Q2). On neuro/other, they saw sequential drops in Isuprel, Wellbutrin, Xenazine etc.
Shares of VRX are down 7.5% to $17.69 in pre-open trade.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Valeant Pharma (VRX) Talks to Sell Salix to Takeda for $10B Have Broken Down - DJ
- Dougherty & Co Starts Quality Systems (QSII) at Neutral
- Tesla's (TSLA) Price Target Cut to Street Low of $155 at Cowen
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS View, Hot Comments
Related EntitiesRaising Prices, Pre Market Movers, Umer Raffat
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!