Valeant sees Q2 results weaker than Q1

Thu Jun 21, 2012 3:21pm EDT
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By Claire Sibonney

(Reuters) - Valeant Pharmaceuticals International Inc (VRX.TO: Quote) said on Thursday it expected results for the second quarter to be weaker than those reported for its first, sending shares of Canada's biggest publicly traded drugmaker down more than 5 percent.

"The second quarter is weaker than the first. We saw that in 2011, we saw that in our budget, we also spot-checked other businesses that have been in the portfolio ... and it's been pretty consistent," Valeant's chief financial officer, Howard Schiller, said at an investor conference in Florham Park, New Jersey.

Morningstar analyst David Krempa said the second-quarter forecast was likely dragging the stock price down even though he thought Valeant's update was generally positive.

"Over time they've been growing earnings so consistently that it's not easy to tell exactly how much seasonality is in the business and maybe that's why people are a little more surprised," said Krempa, based in Chicago.

On a net basis, the company reported a loss of $12.9 million, or 4 cents a share, for the first quarter. On an adjusted cash basis, earnings came in at $360.3 million, or $1.14. Excluding a divestiture, adjusted income was $311.8 million, or 99 cents.

Analysts, on average, expect the company to earn $1.11 a share in the second quarter versus $1.14 in the first quarter, according to Thomson Reuters I/B/E/S.

Still, Valeant anticipates its results for the full year to be at the top end of its previous forecast range, it said in a statement earlier on Thursday.

Valeant, which has been on a buying spree since Michael Pearson became the CEO four years ago, last month raised its 2012 cash earnings forecast by 50 cents a share to a range of $4.45 to $4.70. It expects revenue of $3.4 billion to $3.6 billion.   Continued...