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BHC Q3 Earnings Preview: Here's What You Should Know

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Key Takeaways

  • Bausch Health is expected to report Q3 sales of $2.75 billion and earnings of $1.08 per share on Oct. 28.
  • Salix growth hinges on Xifaxan pricing and volume gains.
  • Bausch Lomb revenue is projected at $1.4 billion, driven by Vision Care, Surgical and Pharmaceuticals.

Bausch Health Companies Inc. (BHC - Free Report) is scheduled to report third-quarter 2026 results on Oct. 28, after the market closes.

The Zacks Consensus Estimate for sales and earnings is pegged at $2.75 billion and $1.08 per share, respectively.

BHC’s Earnings Surprise History

The company’s earnings beat estimates in two of the trailing four quarter and missed in the remaining two, delivering an average surprise of 6.31%. In the last reported quarter, BHC beat on earnings by 31.25%.

Bausch Health Cos Inc. Price, Consensus and EPS Surprise

Bausch Health Cos Inc. Price, Consensus and EPS Surprise

Bausch Health Cos Inc. price-consensus-eps-surprise-chart | Bausch Health Cos Inc. Quote

What Our Model Predicts for BHC

Per our proven model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, that is not the case here, as you can see below.

Earnings ESP: Earnings ESP for BHC is 0.00% as both the Zacks Consensus Estimate and the Most Accurate Estimate is pinned at $1.08. You can uncover the best stocks before they're reported with our Earnings ESP Filter.

Zacks Rank: The company currently carries a Zacks Rank of 2.

Factors Likely to Impact Q3 Results

The company reports revenues under two segments: Bausch Health and Bausch + Lomb.

Within the Bausch Health segment, revenues are recorded under four divisions — Salix, International, Solta Medical and Diversified Products.

Salix division maintains momentum on the back of higher Xifaxan sales driven by higher realized net pricing, volume growth in existing channels and residual Medicaid volume.

The Zacks Consensus Estimate and our model estimate for Salix sales are pegged at $711 million and $761 million, respectively.

Revenues from the International Division have likely been boosted by sales in Latin America. The Zacks Consensus Estimate and our model estimate for International Division sales are pegged at $286 million and $264 million, respectively.

Solta Medical sales likely contributed to revenue growth, supported by the acquisition of a full-service distributor in China. BHC had earlier acquired Shibo’s full-service aesthetics distribution business in China. The acquisition expands its geographic footprint, provides direct access to a large and growing customer base, and enhances its ability to meet rising demand for aesthetic treatments, boosting the long-term growth potential of its global aesthetics franchise.

The Zacks Consensus Estimate and our model estimate for Solta Medical sales are pegged at $169 million and $163 million, respectively.

The Zacks Consensus Estimate and our model estimate for Diversified segment sales are pegged at $201 million and $180 million, respectively.

Bausch + Lomb revenues likely increased, driven by growth across its Vision Care, Surgical and Pharmaceuticals businesses. Both the Zacks Consensus Estimate and our model estimate for B&L sales are pegged at $1.4 billion.

BHC’s Share Price Performance

Bausch stock has gained 15.4% over the past six months compared with the industry’s 9.9% growth.

Zacks Investment Research
Image Source: Zacks Investment Research

Stocks to Consider

Here are some companies you may consider, as our model shows that these have the right combination of elements to deliver an earnings beat this reporting cycle.

Harmony Biosciences (HRMY - Free Report) has an Earnings ESP of +14.14% and a Zacks Rank of 1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Shares of HRMY have gained 55.4% in the past six months. The company missed on earnings in three of the trailing four quarters and beat in the remaining one, delivering an average negative surprise of 184.65%.

Gilead Sciences (GILD - Free Report) has an Earnings ESP of +4.08% and a Zacks Rank of 3 at present.

GILD beat on earnings in each of the trailing four quarters, delivering an average surprise of 7.12%. GILD is scheduled to report third-quarter results on Oct. 29.

Vertex Pharmaceuticals (VRTX - Free Report) has an Earnings ESP of +4.98% and a Zacks Rank of 3 at present.

VRTX beat on earnings in two of the trailing four quarters and missed in the remaining two, delivering an average surprise of 2.28%. VRTX is scheduled to report third-quarter results on Nov. 2.

 

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