Back to top

Image: Bigstock

Why Is Bausch (BHC) Down 10% Since Last Earnings Report?

Read MoreHide Full Article

A month has gone by since the last earnings report for Bausch Health (BHC - Free Report) . Shares have lost about 10% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Bausch due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.

Bausch Beats on Q2 Earnings & Sales

Bausch Health Companies Inc. reported better-than-expected results for the second-quarter results. The company’s adjusted earnings per share of $0.93 beat the Zacks Consensus Estimate of $0.81 but was down from $1.02 per share reported  in the year-ago quarter.

Total revenues of $2.13 billion also topped the Zacks Consensus Estimate of $2.053 but declined 5% from the year-ago quarter.

Quarter in Detail

Revenues in the Bausch + Lomb / International segment were $1.2 billion, down 1% year over year primarily due to divestitures and discontinuations. Excluding the impact of discontinuation of divestitures, primarily the skin care divestiture, and foreign exchange, the Bausch + Lomb/International segment organically improved by approximately 4%, driven primarily by volume increases and strong growth in Europe and China.

Salix segment revenues came in at $441 million up 14% driven by higher sales of Xifaxan, Relistor and other promoted products across the segment.

Ortho Dermatologics segment posted revenues were $142 million, down 12%.
Diversified Products segment revenues were $336 million down 27% from the year-ago quarter primarily due to the impact of the 2017 divestitures and discontinuations of $97 million and by decreases attributed to the previously reported loss of exclusivity for a basket of products.

2018 Guidance Reiterated

The company expects total revenues in the range of $8.15-$8.35 billion.

Other Updates

The name of the company was changed to Bausch Health Companies Inc.

 

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed an upward trend in fresh estimates.

VGM Scores

At this time, Bausch has a poor Growth Score of F, however its Momentum Score is doing a lot better with an A. Following the exact same course, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Bausch has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Bausch Health Cos Inc. (BHC) - free report >>