Categories Earnings, Other Industries

Earnings Preview: Bausch Health looks for cure in Q3

Valeant Pharmaceutical (VRX) that changed name and ticker in mid-July to Bausch Health Companies (BHC) is expected to report its earnings for the second quarter on Tuesday before the market opens. Analysts are expecting weak results from the company.

Thirteen analysts expect earnings of $0.79 per share, which is down from $1.11 per share last year. Sales are anticipated to decline by 7.53% to $2.06 billion.

During the recent first-quarter, Bausch posted a loss compared to a profit last year, due to a drop in the benefit from income taxes and goodwill impairment charges related to the Salix and Ortho Dermatologics businesses.

Revenue slipped 5.4% due to divestitures, discontinuations, and the loss of exclusivity for a basket of products. The results were also impacted by the declines in the Ortho Dermatologics business and lower volumes in the U.S. Diversified Products segment.

The company had lifted its guidance for the full year 2018. The company predicted revenue of $8.15 billion to $8.35 billion and adjusted EBITDA in the range of $3.15 billion to $3.30 billion.

The market analysts are expecting the company’s results to be impacted by the recent tentative approval of the generic version of anti-inflammatory drug Apriso. This could highlight its significant exposure to loss of exclusivities.

During mid-June, the company suffered a setback in the approval of Duobrii lotion for the treatment of plaque psoriasis. The Food and Drug Administration has failed to approve its Canadian company’s Duobrii lotion. Psoriasis is a condition that causes the body to make new skin cells in days rather than weeks.

Also Read:  Major corporate conferences to watch for the week of Sept. 14

Investors are awaiting any updates from the company on the new drug application for sub-micron Loteprednol etabonate ophthalmic gel. The application was accepted for review by the FDA with an expected decision on February 25, 2019. The gel is used for the treatment of postoperative inflammation and pain following ocular surgery.

Shares of Bausch Health opened higher on Monday but turned course to negative territory as traders are cautious ahead of the company’s results. The stock has been trading between $21.49 and $23.70 for the past 52 weeks.

Related: Despite a drop, Bausch Health Q2 revenues beat estimates

Most Popular

Highlights of Aurora Cannabis (ACB) Q4 2020 earnings report

Aurora Cannabis, Inc. (NYSE: ACB) reported a wider loss for the fourth quarter of 2020, hurt by a 5% decrease in revenues. The company’s stock fell sharply during Tuesday’s after-hours

Infographic: Stitch Fix Q4 2020 earnings

Stitch Fix (NASDAQ: SFIX) reported fourth-quarter 2020 financial results after the closing bell on Tuesday. The company reported an 11% increase in Q4 revenues to $443.4 million, beating Wall Street

Nike Inc. (NKE) stock spikes after beating Q1 2021 estimates

Nike Inc.'s (NYSE: NKE) profit and revenue in the first quarter of fiscal 2021 surpassed the market's estimates and sent the NKE stock up by about 7% in the extended

Tags

Top