Valeant Pharmaceuticals (VRX) is an interesting roll up company in the pharma space; the entity was formed by a mega merger of of Valeant and Biovail in late 2010 to form this $16B player. The stock has been quite weak of late, dropping from $51 early in the month, all the way down to its 200 day moving average 5 sessions ago. Yesterday in a wild and woolly post earnings session the stock traded as low as its 200 day at $46 and as high as nearly $51. A fun day for the electronic market makers and no one else. On the positive side, it held its highs and is consolidating nicely today.
- Valeant said it earned $55.9 million, or 18 cents per share, in the final quarter of the year. Excluding costs related to restructuring and a series of acquisitions of other companies, Valeant said it earned 94 cents per share.
- Its revenue jumped 34 percent, to $688.5 million from $514.6 million. The improvement in revenues over the prior-year figure was primarily due to acquisitions completed in 2011 and higher product sales. Organically, (excluding the impact of acquisitions and foreign exchange), revenues grew 10% from the year-ago quarter figure.
- Product sales amounted to $654.2 million (on a reported basis) during the fourth quarter, up 34%. The increase in revenues reflected robust growth in the US Dermatology segment (up 68% to $174.1 million), Canada/Australia segment (up 26% to $101.3 million) and the European branded generic division (up 199% to $144.3 million), partially offset by the US Neurology & other and the Latin American division of branded generics, both of which fell 5% each.
- Analysts expected the company to report a profit of 85 cents per share and $666.7 million in revenue, according to FactSet.
No change to prior guidance
- Cash earnings are expected to come in a band of $3.95–$4.20 per share.
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