Embattled pharma giant Valeant Pharmaceuticals Intl Inc (NYSE:VRX) this morning posted weaker than expected third quarter earnings results and slashed its full-year forecast, sending its shares toppling in early trading.
The Quebec-based company reported Q3 EPS of $1.55, missing analysts’ $1.76 estimate by a whopping 21 cents. Revenue plunged 11% from last year to $2.48 billion, also missing projections for $2.51 billion.
Looking ahead, Valeant slashed its full-year earnings guidance to a range of $5.30 to 5.50 per share, down from a prior $6.60 to $7.00. On average, Wall Street analysts are looking for $6.49 per share for the year. VRX also cut its revenue outlook to a range of $9.55 to $9.65 billion, versus a previous $9.9 to $10.1 billion and below the Street’s $9.93 billion estimate.
The company commented via press release:
“This past quarter, we made further progress toward establishing the new Valeant,” said Joseph C. Papa, Chairman and Chief Executive Officer. “We have, where appropriate, begun to centralize some parts of the business, and hired two key senior executives: Paul Herendeen, Chief Financial Officer, and Dr. Louis Yu, Chief Quality Officer. We also have started to present our financial results under three operating and reportable segments, which we believe will help clarify areas of strength and provide additional transparency. While we have revised our expectations for the remainder of 2016, I continue to be encouraged by the commitment of our employees who work each day toward meeting our mission of helping improve people’s lives through our healthcare products.”
VRX has struggled mightily over the past 18 months amid drug price hiking controversies and a subsequent investigation by the SEC. The downturn has cost most top executives their jobs and driven its once-mighty stock price down to multiyear lows.
Valeant shares fell $1.52 (-7.95%) to $17.61 in premarket trading Tuesday. Prior to today’s report, VRX had already plunged 81.18% year-to-date.