Valeant misses on EPS, cuts outlook, shares drop to $41

|By:, SA News Editor

Valeant's (NYSE:VRX) EPS came in lower than expected, while revenue beat estimates. We covered that here.

Looking ahead, the picture isn't pretty. Valeant sees Q1 EPS of $1.30-1.55, vs. prior guidance of $2.35-2.55, and Street consensus of $2.63. Sees Q1 revenue of $2.3-2.4B vs. prior guidance of $2.8-3.1B and consensus of $2.8B.

Valeant sees full-year EPS of $9.50-10.50 vs. prior guidance of $13.25-$13.75 and consensus of $13.24. Sees full-year revenue of $11-$11.2B vs. prior guidance of $12.5-12.7B and consensus of $12.4B.

CEO Michael Pearson: "The challenges of the past few months are not yet behind us and our goal for 2016 is to better balance our priorities across all of our constituencies - physicians, patients, employees, payors, debt holders and shareholders. I want to again thank all our dedicated employees, as well as the entire management team, for their diligence throughout this difficult time to ensure that the business remains solid.

"In discussion with the Board, we have assumed lower growth in our U.S. dermatology, gastrointestinal, and woman's health portfolios, as well as certain geographies like Western Europe, while keeping our expenses largely unchanged. We plan to work hard to improve these metrics by delivering higher revenues and reducing our costs and, if successful, we hope to beat this guidance in the quarters to come. In the meantime, we are comfortable with our current liquidity position and cash flow generation for the rest of the year, and remain well positioned to meet our obligations."

VRX -7.25% to $64 premarket, having closed yesterday at $69. Update: shares are -40% to $41 at 10:10 AM ET.

Source: Press Release

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