Submitted by Mark Hanna
Courtesy of MarketMontage. View original post here.
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.
A quick look at revenue and earnings via Zachs, but please note much of its growth is not organic (hence the discount on valuation) as it this company is highly acquisitive (full report here):
- 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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Any securities mentioned on this page are not held by the author in his personal portfolio. Securities mentioned may or may not be held by the author in the mutual fund he manages, the Paladin Long Short Fund (PALFX). For a list of the aforementioned fund’s holdings at the end of the prior quarter, visit the Paladin Funds website at http://www.paladinfunds.com/holdings/blog
