Valeant Pharma Cuts FY16 Forecast As It Slips To Q3 Loss On Charge - Quick Facts

(RTTNews) - Valeant Pharmaceuticals International Inc. (VRX, VRX.TO) on Tuesday trimmed its forecast for fiscal 2016 earnings, adjusted EBITDA and revenues after reporting third quarter net loss on hefty impairment charge.

In pre-market activity, Valeant shares were losing around 8.63 percent to $17.48.

For the full year, the company now expects adjusted earnings per share of $5.30 to $5.50, lower than previous range of $6.60 -$7.00. Adjusted EBITDA, a key earnings metric, is now expected to be $4.25 billion to $4.35 billion, compared to previous range of $4.80 billion - $4.95 billion.

Total Revenues are now expected to be in the range $9.55 billion - $9.65 billion, lower than previous range of $9.9 billion to $10.1 billion

On average, 19 analysts polled by Thomson Reuters expect earnings of $6.45 per share for the year on revenues of $9.92 billion. Analysts' estimates typically exclude special items.

In its third quarter, the company recorded a net loss of $1.22 billion, compared to net income of $49.5 million in 2015. The latest results included a goodwill impairment charge of $1.05 billion, mainly attributable to the lower fair value in certain US businesses, mainly the Salix business. Loss per share was $3.49, compared to profit of $0.14 a year ago.

Adjusted net income was $543 million,s compared to $845 million last year. Adjusted earnings per share were $1.55, compared to $2.41 a year ago. Analysts expected earnings of $1.75 per share.

Total Revenues were $2.48 billion, a decrease of 11% from $2.79 billion in the third quarter of 2015. Analysts expected revenues of $2.49 billion. The decline was primarily due to a decline in product sales revenues from existing businesses.