Valeant raises 2014 forecast, tops 3Q expectations
Shares of Valeant Pharmaceuticals jumped Monday after the Canadian drugmaker reported third-quarter results that trumped analyst expectations and raised an annual forecast that it had just slashed in July.
Valeant said its third-quarter performance and stronger results expected in the year’s final quarter prompted it to raise its 2014 earnings forecast to $8.22 to $8.32 per share. That’s up from a range of $7.90 to $8.10 per share that it predicted in July but still below a forecast the company issued in April.
Analysts forecast, on average, $8.04 per share, according to FactSet.
For the third quarter, Valeant earned $275.4 million, or 81 cents per share. That was up from a loss of $973.2 million, or $2.92 per share, in last year’s quarter, when the drugmaker booked several one-time charges. Adjusted earnings totaled $2.11 per share in the recently completed quarter.
Revenue grew 33 percent to $2.06 billion.
Analysts expected, on average, earnings of $1.99 per share on $2.06 billion in revenue.
Valeant Pharmaceuticals International Inc. has been trying to purchase Botox maker Allergan Inc., which has rebuffed several takeover attempts. The companies have traded barbs over a possible deal for months now, and Valeant has been touting lately its financial performance and product development.
U.S.-traded shares of Valeant climbed 4 percent, or $4.78, to $124.99 after markets opened with broader trading indexes being nearly flat. Allergan shares also were up nearly 2 percent, or $3.30, to $180.79.