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Bausch Health Q3 Earnings and Revenues Top, Xifaxan Boosts Sales
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Shares of Bausch Health Companies Inc. (BHC - Free Report) gained 12.6% after the company reported better-than-expected third-quarter results on Oct. 30. The company also raised its annual revenue guidance.
Adjusted earnings per share of $1.12 beat the Zacks Consensus Estimate of $1.03. The reported figure increased from $1.03 in the year-ago quarter due to higher revenues.
Total revenues of $2.5 billion were up 12% year over year. The top line also beat the Zacks Consensus Estimate of $2.4 billion.
Excluding the impact of $9 million in foreign exchange, $96 million in acquisitions, and $16 million in divestitures and discontinuations, revenues increased 9% organically.
BHC’s shares have risen 14.7% year to date compared with the industry’s growth of 17.5%.
Image Source: Zacks Investment Research
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
BHC's Third Quarter Highlights
The company reports revenues under five segments — Salix, International, Diversified Products, Solta Medical and Bausch + Lomb.
Salix revenues totaled $642 million, up 5% year over year. Within this segment, Xifaxan revenues were up 7%, led by growth in underlying demand. Relistor and Trulance revenues were up 9% each.
Xifaxan 550 mg tablets are indicated for the reduction in the risk of overt hepatic encephalopathy recurrence and the treatment of IBS-D in adults.
Salix revenues beat the Zacks Consensus Estimate of $590 million and our model estimate of $583.9 million.
International revenues totaled $291 million, up 6% year over year, led by double-digit organic growth in Canada and solid organic growth in Latin America. The figure beat both the Zacks Consensus Estimate of $281 million and our model estimate of $269.9 million. Revenues increased 8% organically.
Diversified Product revenues amounted to $269 million, up 4% from the year-ago level due to an increase in neurology sales.
Neurology posted a 25% year-over-year increase, driven by Wellbutrin and Aplenzin. Dermatology sales were flat year over year. Sales from the Dentistry business were down 8% year over year. Generics business was down 58%.
Diversified Product revenues beat the Zacks Consensus Estimate of $248 million and our model estimate of $252.1 million.
Solta Medical reported revenues of $112 million, up 35% year over year. The figure beat the Zacks Consensus Estimate of $100 million and our model estimate of $101.9 million. Revenues were up 36% organically, primarily driven by South Korea and China.
Revenues from Bausch + Lomb totaled $1.19 billion, up 19% year over year. The figure missed both the Zacks Consensus Estimate and our model estimate of $1.2 billion. Bausch + Lomb’s revenues increased 10% organically on a year-over-year basis, driven by growth across all business units.
Pipeline Development
Cabtreo (fixed-dose, triple-combination topical treatment for acne vulgaris) was approved in Canada in the third quarter and launched in October 2024.
The phase II study on amiselimod, a new oral S1P receptor modulator that targets the treatment of mild to moderate ulcerative colitis (UC), completed enrollment. BHC also submitted a draft protocol to the FDA for a phase III study for moderate to severe UC patients. BHC is also advancing plans for a phase II study on amiselimod for Crohn's disease.
The phase III studies in the RED-C program on rifaximin for the prevention and delay of the first episode of hepatic encephalopathy are in the treatment phase.
The company’s program for Clear and Brilliant Touch, a fractionated laser device for skin rejuvenation, is also advancing. BHC is awaiting European regulatory response to submission with additional plans to submit to Asia Pacific markets and Canada thereafter.
BHC Raises 2024 Guidance
BHC now expects revenues to be in the range of $9.5-$9.675 billion (previous estimate: $9.4-$9.650 billion). Excluding Bausch + Lomb, revenues are anticipated to be in the band of $4.775-$4.850 billion (previous guidance: $4.7-$4.850 billion). Bausch + Lomb revenues are expected to be in the range of $4.725-$4.825 (previous guidance: $4.700-$4.800).
Our Take on BHC's Q3 Results
Bausch's third-quarter results were encouraging, with sales and earnings beating estimates. The increase in guidance was another positive. The Salix business maintained its momentum on the back of Xifaxan, which witnessed strong growth in underlying demand.
Last month, BHC’s shares gained on reports of refinancing its debt to enable the impending sale of its eye care company, Bausch + Lomb. Management stated that the full separation of Bausch +Lomb continues to be a strategic priority.
In the past 90 days, estimates for Amicus Therapeutics’ 2024 earnings per share (EPS) have moved up from 20 to 22 cents. EPS estimates for 2025 have remained stable at 53 cents during the same period. FOLD’s earnings beat estimates in three of the trailing four quarters and missed the mark once, delivering an average surprise of 23.96%.
In the past 30 days, estimates for TEVA EPS have moved up a cent to $2.44. TEVA’s earnings beat estimates in three of the trailing four quarters and missed the mark once, delivering an average surprise of 8.62%.
In the past 90 days, the 2024 loss per share estimate for Amarin has narrowed by 2 cents. AMRN’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 118.75%.
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Bausch Health Q3 Earnings and Revenues Top, Xifaxan Boosts Sales
Shares of Bausch Health Companies Inc. (BHC - Free Report) gained 12.6% after the company reported better-than-expected third-quarter results on Oct. 30. The company also raised its annual revenue guidance.
Adjusted earnings per share of $1.12 beat the Zacks Consensus Estimate of $1.03. The reported figure increased from $1.03 in the year-ago quarter due to higher revenues.
Total revenues of $2.5 billion were up 12% year over year. The top line also beat the Zacks Consensus Estimate of $2.4 billion.
Excluding the impact of $9 million in foreign exchange, $96 million in acquisitions, and $16 million in divestitures and discontinuations, revenues increased 9% organically.
BHC’s shares have risen 14.7% year to date compared with the industry’s growth of 17.5%.
Image Source: Zacks Investment Research
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
BHC's Third Quarter Highlights
The company reports revenues under five segments — Salix, International, Diversified Products, Solta Medical and Bausch + Lomb.
Salix revenues totaled $642 million, up 5% year over year. Within this segment, Xifaxan revenues were up 7%, led by growth in underlying demand. Relistor and Trulance revenues were up 9% each.
Xifaxan 550 mg tablets are indicated for the reduction in the risk of overt hepatic encephalopathy recurrence and the treatment of IBS-D in adults.
Salix revenues beat the Zacks Consensus Estimate of $590 million and our model estimate of $583.9 million.
International revenues totaled $291 million, up 6% year over year, led by double-digit organic growth in Canada and solid organic growth in Latin America. The figure beat both the Zacks Consensus Estimate of $281 million and our model estimate of $269.9 million. Revenues increased 8% organically.
Diversified Product revenues amounted to $269 million, up 4% from the year-ago level due to an increase in neurology sales.
Neurology posted a 25% year-over-year increase, driven by Wellbutrin and Aplenzin. Dermatology sales were flat year over year. Sales from the Dentistry business were down 8% year over year. Generics business was down 58%.
Diversified Product revenues beat the Zacks Consensus Estimate of $248 million and our model estimate of $252.1 million.
Solta Medical reported revenues of $112 million, up 35% year over year. The figure beat the Zacks Consensus Estimate of $100 million and our model estimate of $101.9 million. Revenues were up 36% organically, primarily driven by South Korea and China.
Revenues from Bausch + Lomb totaled $1.19 billion, up 19% year over year. The figure missed both the Zacks Consensus Estimate and our model estimate of $1.2 billion. Bausch + Lomb’s revenues increased 10% organically on a year-over-year basis, driven by growth across all business units.
Pipeline Development
Cabtreo (fixed-dose, triple-combination topical treatment for acne vulgaris) was approved in Canada in the third quarter and launched in October 2024.
The phase II study on amiselimod, a new oral S1P receptor modulator that targets the treatment of mild to moderate ulcerative colitis (UC), completed enrollment. BHC also submitted a draft protocol to the FDA for a phase III study for moderate to severe UC patients. BHC is also advancing plans for a phase II study on amiselimod for Crohn's disease.
The phase III studies in the RED-C program on rifaximin for the prevention and delay of the first episode of hepatic encephalopathy are in the treatment phase.
The company’s program for Clear and Brilliant Touch, a fractionated laser device for skin rejuvenation, is also advancing. BHC is awaiting European regulatory response to submission with additional plans to submit to Asia Pacific markets and Canada thereafter.
BHC Raises 2024 Guidance
BHC now expects revenues to be in the range of $9.5-$9.675 billion (previous estimate: $9.4-$9.650 billion). Excluding Bausch + Lomb, revenues are anticipated to be in the band of $4.775-$4.850 billion (previous guidance: $4.7-$4.850 billion). Bausch + Lomb revenues are expected to be in the range of $4.725-$4.825 (previous guidance: $4.700-$4.800).
Our Take on BHC's Q3 Results
Bausch's third-quarter results were encouraging, with sales and earnings beating estimates. The increase in guidance was another positive. The Salix business maintained its momentum on the back of Xifaxan, which witnessed strong growth in underlying demand.
Last month, BHC’s shares gained on reports of refinancing its debt to enable the impending sale of its eye care company, Bausch + Lomb. Management stated that the full separation of Bausch +Lomb continues to be a strategic priority.
Zacks Rank and Stocks to Consider
Bausch currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the healthcare sector are Amicus Therapeutics (FOLD - Free Report) , Teva (TEVA - Free Report) , and Amarin (AMRN - Free Report) . While FOLD carries a Zacks #1 Rank (Strong Buy) at present, both TEVA and AMRN carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 90 days, estimates for Amicus Therapeutics’ 2024 earnings per share (EPS) have moved up from 20 to 22 cents. EPS estimates for 2025 have remained stable at 53 cents during the same period. FOLD’s earnings beat estimates in three of the trailing four quarters and missed the mark once, delivering an average surprise of 23.96%.
In the past 30 days, estimates for TEVA EPS have moved up a cent to $2.44. TEVA’s earnings beat estimates in three of the trailing four quarters and missed the mark once, delivering an average surprise of 8.62%.
In the past 90 days, the 2024 loss per share estimate for Amarin has narrowed by 2 cents. AMRN’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 118.75%.