The market expects Bausch Health (BHC) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended March 2025. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released ...

Bausch Health (BHC) shares soared 13.3% in the last trading session to close at $5.10. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 35.7% loss over the past four weeks.Shares gained a district court in the United States granted summary judgment in favor of the company, its gastroenterology business Salix Pharmaceuticals and Teva Pharmaceuticals against Norwich which is looking to get its generic version of Xifaxan approved.Thi ...

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Shares of Bausch Health Companies Inc. (BHC) gained 2.36% after the company reported better-than-expected fourth-quarter results. Shares also gained 7.8% in aftermarket trading.Adjusted earnings per share of $1.15 beat the Zacks Consensus Estimate of $1.12. The earnings were flat year over year.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.Total revenues of $2.56 billion were up 6% year over year. The top line also beat the Zacks Consensus Estimate by 1.89%.Excluding the impact of f ...

Core Insights - Bausch Health reported revenue of $2.56 billion for Q4 2024, a 6.3% increase year-over-year, with EPS at $1.21, up from $1.15 in the previous year [1] - The revenue exceeded the Zacks Consensus Estimate of $2.51 billion, resulting in a surprise of +1.89%, while EPS also surpassed expectations by +8.04% [1] Revenue Breakdown - Total Bausch + Lomb revenues reached $1.28 billion, exceeding the average estimate of $1.23 billion, marking a year-over-year increase of +9.1% [4] - Revenues from Diversified Products were $228 million, below the average estimate of $252.98 million, reflecting a year-over-year decline of -12% [4] - Vision Care revenues amounted to $723 million, surpassing the estimated $698.94 million, with a year-over-year increase of +9.2% [4] - Ophthalmic Pharmaceuticals generated $326 million, slightly above the average estimate of $317.99 million [4] - International revenues were $279 million, falling short of the estimated $294.30 million, representing a year-over-year decrease of -3.8% [4] - Solta Medical revenues reached $138 million, exceeding the average estimate of $115.36 million, with a significant year-over-year increase of +34% [4] - Total revenues excluding Bausch + Lomb were $1.28 billion, slightly above the estimated $1.26 billion, reflecting a +3.6% year-over-year change [4] - Salix revenues were $634 million, surpassing the average estimate of $598.47 million, with a year-over-year increase of +8.8% [4] - Revenues from Diversified Products-Generics were $9 million, significantly below the estimate of $17.13 million, showing a drastic decline of -67.9% year-over-year [4] - Revenues from Diversified Products-Dentistry were $24 million, slightly above the estimate of $23.49 million, with a year-over-year decrease of -17.2% [4] - Other revenues reached $31 million, exceeding the estimate of $23.37 million, marking a year-over-year increase of +19.2% [4] - Revenues from Diversified Products-Neuro were $142 million, below the average estimate of $159.79 million, with a year-over-year change of +0.7% [4] Stock Performance - Bausch shares have declined by -14.9% over the past month, contrasting with the Zacks S&P 500 composite's increase of +2.4% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Financial Data and Key Metrics Changes - Revenues for Bausch Health, excluding Bausch + Lomb, increased by 4% on a reported basis and 7% on an organic basis compared to Q4 2023, with full-year revenues increasing by 5% on a reported basis and 6% on an organic basis [9][10] - Adjusted EBITDA for Q4 2024 increased by approximately 7% compared to the prior period, with full-year adjusted EBITDA growing by 8% [10][29] - Adjusted operating cash flow for the full year was approximately $1.3 billion, reflecting an 85% growth year-over-year [30][35] Business Line Data and Key Metrics Changes - Salix revenues in Q4 were $634 million, a 9% growth year-over-year, driven by Xifaxan, which grew by 16% [36] - Solta revenues increased by 34% in Q4, primarily driven by volume growth, particularly in South Korea and China [41][42] - International segment revenues were $279 million, a decrease of 4% on a reported basis but an increase of 1% on an organic basis [38] Market Data and Key Metrics Changes - Canada and EMEA were the strongest contributors to growth, with Canadian revenue growing 9% on a reported basis and 16% on an organic basis [39] - The Latin American market saw a 14% decrease in organic revenue year-over-year, primarily due to the timing of government tenders in Mexico [40] Company Strategy and Development Direction - The company is focused on three fundamental pillars for value creation: enhancing operational assets, unlocking the value of the Bausch + Lomb equity stake, and optimizing capital structure [12][23] - The strategic priorities include people, growth, innovation, efficiency, and unlocking value, with a strong emphasis on operational excellence and innovation [13][16][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in carrying momentum into 2025, with expectations for continued revenue and adjusted EBITDA growth [12][27] - The company is actively exploring avenues to unlock the full value of its Bausch + Lomb equity stake, ensuring benefits for shareholders [12][52] Other Important Information - The company reduced its net debt by approximately $520 million in Q4 and nearly $1 billion for the full year [45] - The 2025 financial guidance expects revenues between $4.950 billion and $5.100 billion, with adjusted EBITDA projected between $2.625 billion and $2.725 billion [47][48] Q&A Session Summary Question: Update on the Norwich situation and FDA lawsuit - Management stated that Norwich gained tentative approval but the FDA denied final approval, and they believe the FDA's determination regarding Teva's first filer status is correct [61][62] Question: Reasoning behind the discontinuation of the Crohn's disease study - Management clarified that the study was not discontinued but deemed not worth the investment based on performance data [67] Question: Details on recent international deals in the cardiometabolic market - Management highlighted two deals in Latin America aimed at expanding their branded generic portfolio, which are expected to drive growth [70] Question: Contribution of Xifaxan to future growth - Management indicated that Salix with Xifaxan and Solta will be the two biggest contributors to growth in 2025, with continued strong dynamics expected [78] Question: Impact of potential government initiatives on Xifaxan - Management acknowledged Xifaxan's inclusion in the Medicare renegotiation list for 2027 and emphasized the importance of demonstrating its value during negotiations [90][92] Question: Plans for accessing capital markets and pledging Bausch + Lomb shares - Management confirmed that they are exploring various financing options, including potentially pledging Bausch + Lomb shares, but did not provide specific quantification [113][115]

Bausch Health (BHC) came out with quarterly earnings of $1.21 per share, beating the Zacks Consensus Estimate of $1.12 per share. This compares to earnings of $1.15 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 8.04%. A quarter ago, it was expected that this drugmaker would post earnings of $1.03 per share when it actually produced earnings of $1.12, delivering a surprise of 8.74%.Over the last four quarters, the company has ...

Revenue and Financial Performance - Total revenues for 2024 reached $9,625 million, representing a 9.9% increase from $8,757 million in 2023 and a 18.5% increase from $8,124 million in 2022[27] - The Salix segment generated $2,333 million in revenue for 2024, accounting for 24% of total revenues, compared to $2,250 million (26%) in 2023 and $2,090 million (26%) in 2022[27] - The Bausch + Lomb segment contributed $4,791 million in revenue for 2024, making up 50% of total revenues, up from $4,146 million (47%) in 2023 and $3,768 million (46%) in 2022[27] - In 2024, the U.S. and Puerto Rico accounted for approximately 60% of total revenue, while China accounted for approximately 5%[81] - Cencora Inc. contributed 19% of total revenue in 2024, consistent with 2023 and an increase from 18% in 2022[83] - McKesson Corporation accounted for 15% of total revenue in 2024, unchanged from 2023 and 2022[83] - Cardinal Health, Inc. represented 14% of total revenue in 2024, up from 13% in both 2023 and 2022[83] Research and Development - R&D expenses for 2024 were $616 million, which is approximately 6% of total revenue, compared to 7% in both 2023 and 2022[47] - The company has around 75 R&D projects currently in its pipeline, supported by approximately 1,500 dedicated R&D and quality assurance employees[46] - The company is focused on securing and maintaining third-party research, development, and distribution arrangements to support its product offerings[696] Product Portfolio and Market Strategy - The company has approximately 1,000 products in its portfolio, categorized into five reportable segments[27] - The Xifaxan product accounted for revenues of $1,993 million in 2024, up from $1,810 million in 2023 and $1,692 million in 2022[30] - The company is focusing on strategic acquisitions and licensing agreements to enhance its product portfolio and market presence[26] - The company completed the acquisition of XIIDRA in Q3 2023, enhancing its eye health product offerings[44] - The company is pursuing acquisitions, including recent purchases in the ophthalmology sector, which may increase debt levels[690] Regulatory and Compliance - The company is subject to extensive regulations governing the research, development, and marketing of its products, requiring significant time and financial resources[52] - Compliance with the GDPR may result in fines of up to 4% of global annual revenue or €20 million for violations[66] - The regulatory framework for data privacy and security is rapidly evolving, which may materially affect the company's operations and compliance costs[68] - The company is subject to price control restrictions on pharmaceutical products in several countries, limiting its ability to raise prices in anticipation of inflation[625] - The company is making investments in its ESG program to comply with evolving regulations, including the EU's Corporate Sustainability Reporting Directive[79] Financial Risks and Debt - As of December 31, 2024, the company had $14,552 million in fixed rate debt and $5,929 million in variable rate debt[632] - The company has substantial debt obligations, with significant amounts due in 2025 and 2026, impacting financial flexibility[690] - A 1% change in foreign currency exchange rates would have impacted the shareholders' deficit by approximately $40 million[627] - If interest rates were to increase by 100 basis points, the fair value of the company's issued fixed rate debt would decrease by approximately $260 million[632] Goodwill and Impairment - The company recorded goodwill impairment charges of $493 million in 2023 and $824 million in 2022, with no impairments during 2024[649] - The Dermatology reporting unit experienced a goodwill impairment of $151 million due to lower realized pricing and revised future expectations, with a long-term growth rate of 0.0% and a discount rate of 10.75% used in the assessment[656] - The Neurology reporting unit recognized a goodwill impairment of $622 million during the 2022 annual impairment test due to changing market dynamics and increased competition[660] - The Generics reporting unit recognized a goodwill impairment of $91 million as of October 1, 2023, with a long-term growth rate of 1.0% and a discount rate of 10.25% applied in the fair value test[663] Operational Efficiency and Challenges - The company is focused on improving operational efficiency and anticipates a positive impact from these plans[685] - The company expects to continue facing challenges due to ongoing litigation and regulatory investigations, which may affect financial results[686] - The company is actively managing its research and development portfolio, with ongoing evaluations that may lead to project terminations and potential impairment charges[697] - The company is exposed to economic factors such as inflationary pressures, heightened interest rates, and foreign currency rates, which may impact revenues and margins[694] Market Competition and Product Risks - The company faces increased competition from generic pharmaceutical products as patents expire, leading to potential revenue impacts[87] - The company faces risks related to macroeconomic factors, including inflation and potential trade policy changes that could affect operational costs[693] - A substantial amount of the company's revenue is derived from the Xifaxan product line, with potential material impact from the entry of a generic rifaximin product before January 2028[694] - The company faces risks from the introduction of generic, biosimilar, or other competitors to its branded products, which could affect revenue and profits[694] Employee and Workplace Safety - As of December 31, 2024, the company had approximately 20,700 employees, with 10,700 in production and 6,700 in sales and marketing[96] - The Lost Time Incident Rate for the company in 2024 was 1.7 recorded cases per 100 employees, consistent with the industry average[98] - Bausch + Lomb's Days Away Rate (DAR) in 2024 was 4.9, significantly lower than the industry standard DAR of 22[99] Future Outlook and Strategic Plans - The anticipated completion of the B+L Separation is subject to various conditions, including regulatory approvals and market conditions[688] - The company is preparing for potential changes in drug pricing regulations that could affect revenue[688] - The company is exploring plans for its aesthetic medical business, which may influence future growth strategies[698]