Bausch Health Companies Inc Down 11.90% To $5.15 After Earnings Miss

Tuesday, August 9, 2022 - Bausch Health Companies Inc (BHC) reported downside earnings and revenues today.

Bausch Health Companies Inc's earnings came in at an EPS of $0.55 per share, 52% lower than estimates for an EPS of $1.15 per share. The firm's earnings are down 43% since reporting $0.97 per share in the same period a year ago. Remember, earnings reported were on an adjusted basis, so they may not be comparable to prior reports and/or analyst estimates.

Consensus analyst estimates were at $2.6 billion. The Healthcare company missed on those expectations for its second quarter with revenue of $2 billion, a negative revenue surprise of $643 million (25%). The firm managed negative 6% growth year-over-year due to Bausch Health Companies Inc reporting quarterly revenue of $2.1 billion in its year-ago quarter. Bausch Health Companies Inc achieved a lower earnings growth rate than revenue, signaling that the business has not been able to improve its profit margin.

The stock is down 11.90% to $5.15 after the report.

Bausch Health Companies Inc's profit margins took a hit as earnings fell at a faster pace than revenues.

Wall Street Analysts had an average rating of Buy on the stock prior to the report.

Trading in the five days leading up to the report earned Bausch Health Companies Inc a Bullish Sentiment Rank from InvestorsObserver.

Prior to the report, InvestorsObserver gave the stock an overall score of 24. Meanwhile, the average Wall Street analyst rated the stock a Buy.

Formerly known as Valeant Pharmaceuticals, Bausch Health is a global specialty pharmaceutical, consumer health, and medical device company with a focus on branded products for the dermatology, gastrointestinal, and ophthalmology markets. The company reports revenue in five segments: Bausch+Lomb (45% of revenue), Salix Pharmaceuticals (24%), international pharma (14%), ortho dermatology (7%), and diversified products (10%). Bausch is the market leader in consumer visioncare in India and China and the fourth-largest visioncare company by sales in the United States.