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Why Is Bausch (BHC) Up 13.3% Since Last Earnings Report?
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A month has gone by since the last earnings report for Bausch Health (BHC - Free Report) . Shares have added about 13.3% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Bausch due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Bausch Q3 Earnings and Revenues Surpass Estimates
The company’s adjusted earnings per share of $1.31 easily beat the Zacks Consensus Estimate of $1.02 and increased from $1.19 reported in the year-ago quarter.
Total revenues of $2.1 billion beat the Zacks Consensus Estimate by 1.38% but declined from $2.2 billion a year ago. Revenues were negatively impacted by the COVID-19 pandemic to the tune of approximately $150 million.
Quarter in Detail
Revenues in the Bausch + Lomb/International segment (comprised 55% of the total revenues) were $1.169 billion, down 1% year over year. Excluding the impact of discontinuations and divestitures, the segment sales were flat organically due to the impacts of the COVID-19 pandemic.
The company recently acquired an exclusive license from Eyenovia, in the United States and Canada for the development and commercialization of an investigational microdose formulation of atropine ophthalmic solution, which is being investigated for the reduction of pediatric myopia progression in children aged 3-12 years.
The Salix segment revenues declined 10% year over year to $496 million due to the impact of the COVID-19 pandemic, the loss of exclusivity for certain products in the segment, primarily Apriso, and the expected decline in Glumetza. Sales of Xifaxan decreased 3%. The FDA granted Orphan Drug designation to rifaximin for the treatment of sickle cell disease.
The Ortho Dermatologics segment revenues were $144 million, down 2% year over year.
Diversified Products segment revenues were $329 million, down 2% from the year-ago quarter, primarily due to the loss of exclusivity of certain products and the pandemic-led woes.
During the quarter, the company repaid debt by approximately $100 million.
2020 Guidance Reiterated
The company reiterated its revenue guidance range for 2020. Revenues are projected to be $7.80-$8.00 billion.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended downward during the past month. The consensus estimate has shifted -13.6% due to these changes.
VGM Scores
Currently, Bausch has an average Growth Score of C, however its Momentum Score is doing a bit better with a B. Charting a somewhat similar path, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Bausch has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Why Is Bausch (BHC) Up 13.3% Since Last Earnings Report?
A month has gone by since the last earnings report for Bausch Health (BHC - Free Report) . Shares have added about 13.3% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Bausch due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Bausch Q3 Earnings and Revenues Surpass Estimates
The company’s adjusted earnings per share of $1.31 easily beat the Zacks Consensus Estimate of $1.02 and increased from $1.19 reported in the year-ago quarter.
Total revenues of $2.1 billion beat the Zacks Consensus Estimate by 1.38% but declined from $2.2 billion a year ago. Revenues were negatively impacted by the COVID-19 pandemic to the tune of approximately $150 million.
Quarter in Detail
Revenues in the Bausch + Lomb/International segment (comprised 55% of the total revenues) were $1.169 billion, down 1% year over year. Excluding the impact of discontinuations and divestitures, the segment sales were flat organically due to the impacts of the COVID-19 pandemic.
The company recently acquired an exclusive license from Eyenovia, in the United States and Canada for the development and commercialization of an investigational microdose formulation of atropine ophthalmic solution, which is being investigated for the reduction of pediatric myopia progression in children aged 3-12 years.
The Salix segment revenues declined 10% year over year to $496 million due to the impact of the COVID-19 pandemic, the loss of exclusivity for certain products in the segment, primarily Apriso, and the expected decline in Glumetza. Sales of Xifaxan decreased 3%. The FDA granted Orphan Drug designation to rifaximin for the treatment of sickle cell disease.
The Ortho Dermatologics segment revenues were $144 million, down 2% year over year.
Diversified Products segment revenues were $329 million, down 2% from the year-ago quarter, primarily due to the loss of exclusivity of certain products and the pandemic-led woes.
During the quarter, the company repaid debt by approximately $100 million.
2020 Guidance Reiterated
The company reiterated its revenue guidance range for 2020. Revenues are projected to be $7.80-$8.00 billion.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended downward during the past month. The consensus estimate has shifted -13.6% due to these changes.
VGM Scores
Currently, Bausch has an average Growth Score of C, however its Momentum Score is doing a bit better with a B. Charting a somewhat similar path, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Bausch has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.