Valeant investors are understandably scared of earnings guidance reductions -- they grew all too familiar over the past couple of years
The company expects several things will hurt Ebitda for the rest of the year, including the divestiture of its second-best-selling medicine (via the sale of Dendreon) and worse-than-expected performance in some business lines.
Valeant says two positive developments -- delayed competition on some of its older medicines and foreign-exchange gains -- conveniently offset those negative trends, allowing it to maintain its forecast.
It would be one thing to maintain this guidance in the face of divestitures and continued competitive uncertainty if there were evidence of broader growth at the company.
Things are looking up for Valeant in some ways; it has made better progress on divestitures than I previously expected , and it has pushed out its day of Debt reckoning.
- Valeant says it will exceed debt repayment target, shares surgeNasdaq
- Valeant cuts revenue forecast; makes progress on debt repaymentCNBC
- Is This the Turnaround Valeant Pharma Has Been Waiting For?24/7 Wall St.
- Valeant's Top Drug Is Growing Again, Offsetting Wider SlumpBloomberg
- Valeant Isn't Out of Trouble Yet, Debt Remains Difficult to CurbTheStreet.com
- Valeant's stock up after CEO says drug maker making progressCBC.ca
- Valeant is on track to reduce about $5 billion of debt. But it has more than ...MarketWatch
- Valeant says it will exceed debt repayment target; shares jumpThe Globe and Mail
- Valeant Pharmaceuticals International (VRX) Q2 2017 Results - Earnings Call ...Seeking Alpha