Valeant whiffs on earnings, slashes guidance, and now the stock is getting crushed
The Laval, Quebec-based company said it had a loss of $1.08 per share. Adjusted for one-time gains and costs, earnings were $1.27 per share, less than the $1.37 that was expected by Wall Street analysts.
First quarter revenue was in-line with expectations at $2.37 billion.
Following the report shares of the company were down as much as 10.5% in pre-market trading.
The company also slashed its guidance for 2016.
Valeant said it now expected full-year adjusted earnings per share to come in between $6.60-$7.00, well below its prior outlooks for earnings of $8.50-$9.50 per share.
Revenues for 2016 are now expected to come in between $9.9-$10.1 billion, below the company's previous expectations for revenue of $11-$11.2 billion this year.
Valeant shares have fallen 72 percent since the beginning of the year. The stock has fallen 88 percent in the last 12 months.
This was the first quarterly report since CEO Mike Pearson was replaced by Joseph Papa. In a statement, Papa said, "The first quarter's results reflect, in part, the impact of significant disruption this organization has faced over the past nine months. This has been a difficult period for Valeant and its stakeholders, and while there are some challenges to work through in certain business operations in 2016, such as our U.S. dermatology unit, the majority of our businesses are performing according to expectations."
These results were reported later than expected as delays related management and other organizational delays held up the report. In Valeant's announcement, Papa added, "While we recognize that we did not meet the timeline for filing our first quarter results, with our filing expected this week, we will be current in our financial reporting. We have made progress toward stabilizing the organization over the past few months, and we expect to file our financial results in a timely manner going forward."