Valeant says currency fluctuations hitting results
(Reuters) - Valeant Pharmaceuticals International (VRX.TO: Quote) said on Friday that exchange rate fluctuations were hitting its results more than expected and announced its outlook for 2012.
The Canadian drugmaker forecast cash earnings of $3.95 to $4.20 a share in 2012, on revenue of $3.1 billion to $3.4 billion. Analysts, on average, expected earnings of $3.84 a share on revenue of $3.2 billion, according to Thomson Reuters I/B/E/S.
"Overall the guidance was pretty much in line with expectations," said Susquehanna Financial Group analyst Gary Nachman on the 2012 forecast.
Valeant also laid out new strategic objectives, which included becoming a top 15 pharmaceutical company by market capitalization by the end of 2013.
"I think that's a little bit pie in the sky, and that's going to require a major transaction," said Nachman. "It just demonstrates that the CEO thinks very big, and that he's really looking to increase shareholder value in a lot of different ways."
For the fourth quarter, ended December 31, the company expects to report earnings of 83 to 87 cents a share on revenue upwards of $650 million. In November Valeant forecast earnings of 80 to 95 cents a share.
The drugmaker said currency fluctuations had cut its revenue by about $40 million, and earnings by about 5 cents a share.
Valeant shares were down 0.9 percent at C$47.67 on Friday morning on the Toronto Stock Exchange.
(Reporting by Allison Martell; editing by Rob Wilson)
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