Valeant is getting crushed after cutting its revenue guidance
The Canadian drugmaker, which is under scrutiny for its business and accounting practices, said on Tuesday that total 2016 revenue was expected to be $11 billion to $11.2 billion, down from its previous estimate of $12.5 billion to $12.7 billion.
The company originally provided its 2016 forecast in December, but it withdrew it on February 29 when CEO Michael Pearson returned from two months of medical leave.
Valeant said in a regulatory filing that if it did not file its annual report by Tuesday, it would be in breach of a reporting covenant and holders of at least 25% of any series of notes may deliver a notice of default.
The company, whose US-listed shares were down about 15% in premarket trading, said preliminary fourth-quarter revenue was $2.8 billion, hurt mainly by weaker-than-expected sales in its gastrointestinal business.
Valeant reported adjusted earnings of $2.50 a share, short of the average analyst estimate of $2.61.
The company said it expected adjusted earnings of $9.50 to $10.50 a share for 2016, down from its previous estimate of $13.25 to $13.75 a share.
Analysts on average were expecting earnings of $13.24 a share on revenue of $12.41 billion, according to the Thomson Reuters I/B/E/S.
Here's a chart showing the stock's roughly 71% decline over the past year and its drop in premarket trading:
(Reuters reporting by Ankur Banerjee in Bengaluru; Editing by Sriraj Kalluvila)