On Tuesday, shares of struggling pharmaceutical company Valeant Pharmaceuticals Inc. are soaring, up over 18% in mid-morning trading after the company reported its second quarter fiscal 2016 results.

Valeant reported adjusted earnings per share of $1.40 (excludes $2.28 from non-recurring items), missing the Zacks Consensus Estimate of $1.59 per share and declining 45.7% year-over-year.

Total revenues came in at $2.4 billion, lagging behind our consensus estimate of $2.592 billion and falling 11.4% year-over-year. This was mostly due to a decline in product sales revenues from its existing business and negative foreign currency exchange impact.

"We continue to make progress towards stabilizing the organization," said Joseph C. Papa, chairman and CEO. "We are also announcing a new strategic direction for Valeant today, which, at its heart has a mission to improve patients' lives, and will involve reorganizing our company and reporting segments.”

Cash flow from operations was $448 million, up 9% from the prior year period.

As a result, Valeant affirmed its full-year guidance. EPS is expected to fall in the range of $6.60-7.00 per share on revenues in the range of $9.9-10.1 billion.

 “Although it will take time to implement and execute our turnaround plan, I am confident that we will show progress in the coming quarters,” Mr. Papa continued.

The company also announced that they have agreed to sell the brodalumab EU rights, Synergetics USA OEM business, and Ruconestfor a total upfront payment of $181 million in order to streamline its portfolio on the second quarter.

VRX currently holds a #4 (Sell) on the Zacks Rank.

VALEANT PHARMA Price, Consensus and EPS Surprise

VALEANT PHARMA Price, Consensus and EPS Surprise | VALEANT PHARMA Quote

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