Valeant Pharma (VRX) Misses Dramatically Reduced Expectations - BMO

BMO Capital analyst, Alex Arfaei, posted an earnings flash on Valeant Pharmaceuticals' (NYSE: VRX) miss and guide down. The call is ongoing and began at 8:00AM.

This morning, Valeant reported unaudited 4Q15 revenues of $2.78B, 1% above consensus of $2.75B. Gross margin of 75.6% was 2.1% below consensus while OPEX was driven by higher SG&A and R&D, and the 5% tax rate was in-line. Non-GAAP EPS of $2.50 was below BMO's $2.64 and consensus of $2.61 as higher revenues were offset by lower gross margin and higher OPEX.

Valeant updated its 2016 guidance: non-GAAP EPS of $9.50 - $10.50 vs. prior guidance of $13.25 - $13.75 (~25% below consensus of $13.45 and our $13.33 forecast) on revenues of $11.0 - $11.2Bn down from $12.5 - $12.7Bn (11% lower vs. consensus $12.5 and 9% below BMO forecast of $12.2B).

The analyst summed up the early look sussinctly:

The quarter was worse than expected, the guidance was worse than expected, and the timing of the 10- K is still uncertain. Unless management has more positive comments on the call, these results and guidance are unlikely to meaningfully improve investor confidence,

For an analyst ratings summary and ratings history on Valeant Pharmaceuticals click here. For more ratings news on Valeant Pharmaceuticals click here.

Shares of Valeant Pharmaceuticals closed at $69.04 yesterday.

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