Valeant Pharmaceuticals International Inc. (NYSE: VRX) reported better than expected third quarter earnings for fiscal year 2017. The pharmaceutical company also beat analysts’ estimates in both revenue and earnings sending shares 18 percent higher shortly after open on Tuesday.
For the third quarter, Valeant reported revenue of $2.22 billion, falling 10 percent year over year, but beating analysts’ estimates of $2.15 billion. The company reported an EPS of $1.04, beating Thomson Reuters analysts’ estimates of $1.04.
The 1 percent increase in revenue year over year in the Bausch and Lomb segment was able to slightly offset the decrease in net revenue. The segment reported revenue of $1.25 billion for the quarter.
Bausch and Lomb received U.S. Food and Drug Administration approval for VYZULTA, a treatment for glaucoma. The branches also introduced Biotrue ONEday for astigmatism in daily disposable contacts.
"Our strong third-quarter performance demonstrates our continued progress in the turnaround of Valeant. Driven by solid execution in our Bausch + Lomb/International segment and our Salix business,” said Joseph C. Papa, chairman and chief executive officer, Valeant.
"We realize there is more progress to be made, and we will continue to hold ourselves accountable for delivering on our commitments to best serve our shareholders, employees, customers, and most importantly, patients,” added Papa.
The company increased its full year guidance based on the third quarter. Valeant expects revenue in the range of $8.70 to $8.90 billion from the previous guidance of $8.65 to $8.80 billion. The company expects an EPS in the range of $3.60 to $3.75.
Wall Street analysts are estimating an EPS of $0.93 for the fourth quarter. Analysts hold their current price targets at $16 for Valeant.
The full year guidance will be reflected upon sales of its skin care products as well as the sale of its Obagi Medical Products business which is expected to close before the end of the year.