Core Insights - Bausch Health Companies Inc. (BHC) reported better-than-expected results for Q3 2025, with shares gaining 7.3% in after-market trading [1] - Adjusted earnings per share were $1.16, surpassing the Zacks Consensus Estimate of $1.07 and up from $1.12 in the previous year [1] - Total revenues reached $2.68 billion, a 7% year-over-year increase, also beating the Zacks Consensus Estimate of $2.6 billion [1] Revenue Breakdown - Revenues increased 5% organically year-over-year when excluding foreign exchange impacts of $29 million, acquisitions of $3 million, and divestitures [2] - BHC's revenues are categorized into two segments: Bausch Health and Bausch + Lomb [5] - Salix revenues totaled $716 million, up 12% year-over-year, driven by a 16% increase in Xifaxan sales [6][7] - International revenues were $286 million, down 2% year-over-year, but still exceeded estimates [7] - Solta Medical reported revenues of $140 million, a 25% increase year-over-year, beating estimates [8] - Diversified Product revenues were $258 million, down 4% year-over-year, but still surpassed estimates [9] - Bausch + Lomb revenues totaled $1.28 billion, up 7% year-over-year, although it missed estimates [10] Guidance and Outlook - The company raised its 2025 revenue outlook to a range of $10.050-$10.250 billion, up from previous guidance [14] - Excluding Bausch + Lomb, revenues are projected to be between $5.000-$5.100 billion [14] Pipeline Developments - Phase III studies in the RED-C program for rifaximin are ongoing, with top-line results expected by early 2026 [11] - The FDA granted Breakthrough Therapy Designation for Larsucosterol for treating alcohol-associated hepatitis [12] - The Clear and Brilliant Touch program for skin rejuvenation is advancing with approvals in multiple countries [13] Strategic Moves - BHC recently acquired DURECT Corporation, enhancing its R&D capabilities and expanding its therapeutic portfolio [16] - The company faces significant long-term debt obligations of $21 billion as of September 30, 2025 [17]

Capital Structure and Debt Management - Bausch Health reported a significant focus on managing its capital structure, including actions to reduce long-term debt principal balances and extend maturities[276]. - The company completed the April 2025 Refinancing Transactions, extending approximately $6,870 million in aggregate debt maturities from 2025-2028 to 2030-2032, enhancing operational flexibility[283]. - As of September 30, 2025, total debt obligations amounted to $20,529 million, with no debt maturities until 2027 following the repayment of the AR Credit Facility[287]. - Bausch + Lomb entered into a new $2,325 million term B loan facility maturing January 15, 2031, as part of its June 2025 Refinancing Activity, indicating ongoing financial restructuring efforts[284]. - The company repurchased and retired approximately $602 million of its outstanding 9.25% Senior Unsecured Notes in August 2025, reflecting proactive debt management[287]. - As of September 30, 2025, long-term debt was $21,042 million, a decrease from $21,616 million as of December 31, 2024[457]. - The company expects its primary sources of liquidity to be sufficient to meet current needs for the next twelve months[452]. Revenue and Financial Performance - Revenues for the three months ended September 30, 2025, were $2,681 million, an increase of $171 million, or 7%, compared to $2,510 million in 2024[345]. - Operating income for the same period was $619 million, up $301 million from $318 million in 2024[346]. - Net income attributable to Bausch Health for the three months ended September 30, 2025, was $179 million, an increase of $264 million compared to a net loss of $85 million in 2024[347]. - For the nine months ended September 30, 2025, revenues were $7,470 million, an increase of $404 million, or 6%, from $7,066 million in 2024[348]. - Operating income for the nine months ended September 30, 2025, was $1,339 million, an increase of $351 million from $988 million in 2024[350]. - Net income attributable to Bausch Health for the nine months ended September 30, 2025, was $269 million, an increase of $408 million compared to a net loss of $139 million in 2024[352]. Segment Performance - The Salix segment, primarily driven by the Xifaxan product line, accounted for approximately 85% of its revenues, highlighting the importance of this product in the company's portfolio[272]. - Salix segment revenue increased by $74 million, or 12%, to $716 million, primarily due to a $41 million increase in volumes and a $31 million increase in net realized pricing[1][2]. - Bausch + Lomb segment revenue rose by $85 million, or 7%, to $1,281 million, driven by a $76 million increase in volumes and a favorable foreign currency impact of $19 million[1][2]. - Solta Medical segment revenue increased by $28 million, or 25%, to $140 million, mainly due to a $26 million increase in volumes[1][2]. - Total segment profits for the three months ended September 30, 2025, were $1,213 million, an increase of $147 million, or 14%, compared to $1,066 million in 2024[1]. - Salix segment profit increased by $134 million, or 31%, to $570 million, attributed to higher revenues and lower SG&A expenses[1][2]. Research and Development - The company is actively pursuing strategic acquisitions and R&D investments to drive growth within its core businesses, aiming to address unmet market needs[290]. - As of September 30, 2025, the company had approximately 75 projects in its global pipeline, with 1,500 dedicated R&D and quality assurance employees involved in R&D efforts across 24 facilities[292]. - The company completed the acquisition of DURECT Corporation in September 2025, with its lead drug candidate Larsucosterol receiving Breakthrough Therapy designation from the FDA for alcohol-associated hepatitis[295][302]. - The company launched CABTREO Topical Gel, the first FDA-approved fixed-dose, triple-combination topical treatment for acne, in the U.S. in Q1 2024 and in Canada in October 2024[297]. - The next-generation Fraxel FTX laser device was launched in the U.S. in April 2025, enhancing the company's dermatology product offerings[296]. - The company is expanding its premium intraocular lenses (IOL) portfolio, with enVista Aspire and enVista Envy launched in the U.S. in October 2023 and in Canada in June 2024[304]. Market and Regulatory Environment - The OECD's two-pillar plan includes a global minimum corporate tax rate of 15% for multinational enterprises with consolidated revenue of at least €750 million, effective for tax years beginning in January 2024[328]. - The One Big Beautiful Bill Act maintains the corporate tax rate but retroactively adjusts bonus depreciation and interest limitation effective January 1, 2025[330]. - The Inflation Reduction Act allows the U.S. government to negotiate prices for certain drugs, with potential negative impacts on sales revenues starting in 2027[333]. - Xifaxan has been selected for the drug price negotiation program, with the negotiated price expected to negatively impact sales revenues in 2027[334]. - The company anticipates significant sales decreases following the loss of exclusivity for products like Aplenzin and Xifaxan, expected in 2026 and 2028 respectively[340]. - The company has identified branded products facing potential loss of exclusivity and generic competition from 2026 to 2029, including Bryhali and Relistor Subcutaneous[340]. Patient Access and Affordability - The company has implemented a Patient Access and Pricing Team to ensure patients can access branded prescription products, which may impact future pricing and revenues[308]. - The company is focused on improving patient access and affordability of its products, including a cash-pay prescription program for dermatology products[310]. - The company has expanded support for Medicaid-eligible patients through an enhanced Patient Assistance Program effective October 1, 2025[337]. Cost Management - The company experienced a decrease in selling, general and administrative expenses of $55 million for the nine months ended September 30, 2025, primarily due to a lower annual industry assessment fee[348]. - Research and development expenses increased by $20 million for the nine months ended September 30, 2025, primarily due to increased spending on certain projects[348]. - Selling, General and Administrative (SG&A) expenses decreased by $55 million, or 6%, to $795 million for Q3 2025, primarily due to a lower annual industry assessment fee[364]. - Research and Development (R&D) expenses increased by $20 million, or 14%, to $166 million for the three months ended September 30, 2025, maintaining approximately 6% of product sales[365]. - Amortization of intangible assets decreased by $21 million, or 8%, to $253 million for Q3 2025, due to fully amortized intangible assets[367]. - Restructuring, integration, and separation costs rose to $17 million in Q3 2025 from $1 million in Q3 2024, indicating ongoing evaluations for operational streamlining[372]. - Interest expense increased by $66 million, or 19%, to $412 million for the three months ended September 30, 2025, attributed to higher effective interest rates[378].

Financial Data and Key Metrics Changes - Bausch Health reported a revenue of $2.681 billion for Q3 2025, reflecting a 7% increase on a reported basis and a 5% increase on an organic basis compared to the same period last year [8][9] - Adjusted EBITDA was $986 million, an increase of $77 million or 8% year-over-year, while adjusted operating cash flow was $508 million [8][9] - The company reduced its debt by approximately $600 million using cash on hand, leading to an increase in full-year guidance for revenue, adjusted EBITDA, and adjusted operating cash flow [6][9] Business Line Data and Key Metrics Changes - The Solta business achieved a 25% growth on a reported basis and 24% on an organic basis, while Salix delivered a 12% growth on a reported basis and 11% on an organic basis [7][10] - XIFAXAN revenue grew 16% in Q3, with volume up 9%, driven by strong performance in the AI-driven customer insights engine [10][20] - The diversified segment saw revenues decrease by 4% on a reported basis and 6% on an organic basis, primarily due to challenges in the neurology business [14] Market Data and Key Metrics Changes - International segment revenues were $286 million, a decrease of 2% on a reported basis and 4% on an organic basis, with mixed performance across geographies [11] - EMEA led the international segment with a 12% increase, while Canada and LatAm contracted by 8% and 17%, respectively [11] Company Strategy and Development Direction - The company is focused on five strategic priorities: people, growth, efficiency, innovation, and unlocking value, which guide its vision for the future [18] - Bausch Health is committed to enhancing its patient assistance program while exiting the Medicaid and 340B channels to optimize sales channels [75] - The acquisition of DURECT Corporation is expected to enhance the R&D pipeline and support innovation and growth priorities [24][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate a dynamic macro backdrop and achieve financial targets [6][18] - The company anticipates continued growth in its Salix business and is optimistic about the future potential of its Solta Medical segment [21][22] Other Important Information - The company raised its full-year guidance for revenue to between $5 billion and $5.1 billion, with adjusted EBITDA expected to be between $2.7 billion and $2.75 billion [15][16] - The company is assessing all initiatives for driving shareholder value creation following a significant refinancing transaction [16] Q&A Session Summary Question: Revenue growth for XIFAXAN outpacing script growth - Management explained that the disconnect is due to a one-time benefit associated with gross-to-net accrual and strong new patient starts [29][31] Question: Dynamics of XIFAXAN in relation to CMS negotiations - Management confirmed ongoing fruitful negotiations with CMS and expects pricing to be published on November 30, 2025 [34][35] Question: Revised guidance and one-time impacts - Management acknowledged one-time adjustments in Q3 but indicated that the fourth quarter is expected to align with prior expectations [44][45] Question: Impact of IRA on commercial dynamics - Management clarified that the renegotiation impacts 2027 and does not change the commercial dynamics significantly [55] Question: Benefits of exiting the 340B program - Management highlighted that exiting the program allows for an enhanced patient assistance program, providing better access to medications for eligible patients [75][76] Question: Debt refinancing and deleveraging strategy - Management outlined that free cash flow and potential asset sales will be key sources for deleveraging the company [80][81]

Financial Data and Key Metrics Changes - Bausch Health reported a revenue of $2.681 billion for Q3 2025, reflecting a 7% increase on a reported basis and a 5% increase on an organic basis compared to the same period last year [8][9] - Adjusted EBITDA was $986 million, an increase of $77 million or 8% year over year, while adjusted operating cash flow was $508 million [8][9] - For Bausch Health excluding Bausch + Lomb, revenue was $1.4 billion, up 7% on a reported basis and 5% on an organic basis, with adjusted EBITDA of $773 million, also up 7% [9][10] Business Line Data and Key Metrics Changes - Solta Medical achieved 25% growth on a reported basis and 24% on an organic basis, while Salix delivered 12% growth on a reported basis and 11% on an organic basis [7][10] - Xifaxan revenue grew 16% in Q3, with volume up 9%, driven by strong performance in the OHE indication [10][20] - The diversified segment saw revenues decrease by 4% on a reported basis and 6% on an organic basis, primarily due to challenges in the neurology business [14] Market Data and Key Metrics Changes - International segment revenues were $286 million, a decrease of 2% on a reported basis and 4% on an organic basis, with mixed performance across geographies [11] - EMEA led the international segment with a 12% increase, while Canada and LATAM contracted by 8% and 17% respectively [11] Company Strategy and Development Direction - The company is focused on five strategic priorities: people, growth, efficiency, innovation, and unlocking value, which guide its vision for the future [18][21] - Bausch Health is raising its full-year guidance for revenue, adjusted EBITDA, and adjusted operating cash flow due to strong performance in the first nine months of the year [6][15] - The acquisition of DURECT Corporation is expected to enhance the R&D pipeline and support innovation and growth priorities [23][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating a dynamic macro backdrop and highlighted the strong operational performance across various business lines [6][18] - The company anticipates continued growth in its Salix business and is optimistic about the future potential of Solta Medical [21][22] Other Important Information - The company reduced its debt by approximately $600 million using cash on hand [6] - Adjusted gross margin was 72.7%, which is 40 basis points lower year over year [8] Q&A Session Summary Question: Revenue growth for Xifaxan outpacing script growth - Management explained that the disconnect is due to a one-time benefit associated with gross-to-net accrual changes and strong new patient starts [30][32] Question: Impact of CMS negotiations on Xifaxan - Management confirmed ongoing fruitful negotiations with CMS and expects pricing to be published on November 30, 2025, with a minimal impact on overall EBITDA outlook [35][36] Question: Revised guidance and one-time factors - Management acknowledged one-time adjustments in Q3 but emphasized positive trends across the portfolio, leading to increased guidance for EBITDA and cash flow [46] Question: SG&A spending trends - Management indicated that Q3 SG&A was unusually low due to non-recurring accrual changes, suggesting Q1 and Q2 as better indicators for future run rates [47] Question: Capital allocation and debt refinancing - Management outlined a focus on servicing debt and reinvesting in the business, with potential asset sales as a means for deleveraging [81]

Financial Data and Key Metrics Changes - Bausch Health reported a year-over-year revenue growth of 7% on a reported basis and 5% on an organic basis, achieving $2.681 billion in revenue for the third quarter [4][8] - Adjusted EBITDA increased by 8% year-over-year to $986 million, with an adjusted gross margin of 72.7%, which is 40 basis points lower than the previous year [8][9] - The company reduced its debt by approximately $600 million, leading to an increase in full-year guidance for revenue, adjusted EBITDA, and adjusted operating cash flow [5][15] Business Line Data and Key Metrics Changes - The Solta Medical segment saw a remarkable 25% growth on a reported basis and 24% on an organic basis, while Salix delivered 12% growth on a reported basis and 11% on an organic basis [6][10] - Xifaxan revenue grew 16% in the third quarter, with volume up 9%, driven by strong performance in the hepatology segment [10][20] - The diversified segment experienced a revenue decrease of 4% on a reported basis and 6% on an organic basis, primarily due to challenges in the neurology business [13][14] Market Data and Key Metrics Changes - International segment revenues decreased by 2% on a reported basis and 4% on an organic basis, with mixed performance across geographies [11] - EMEA led the international segment with a 12% increase, while Canada and LATAM contracted by 8% and 17%, respectively [11] - The Asia-Pacific region contributed significantly to Solta Medical's growth, with South Korea achieving 96% growth year-over-year [12][22] Company Strategy and Development Direction - The company is focused on five strategic priorities: people, growth, efficiency, innovation, and unlocking value, which guide its vision for the future [18] - Bausch Health aims to enhance its operational assets and continue executing its innovation and profitable growth agenda [16][18] - The acquisition of DURECT Corporation is expected to complement the existing portfolio and enhance the R&D pipeline, particularly in hepatology [24][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating a dynamic macro backdrop and highlighted strong operational performance [5][18] - The company anticipates continued growth in its key segments, particularly in Xifaxan and Solta Medical, while also preparing for the impact of CMS pricing negotiations [19][33] - Full-year guidance has been raised, reflecting positive trends across the portfolio, with revenue expected between $5 billion and $5.1 billion [15][16] Other Important Information - The company exited the 340B program and Medicaid drug rebate program to optimize sales channels and enhance patient assistance programs [61][62] - The focus remains on deleveraging the business and optimizing the capital structure, with plans to use free cash flow for debt servicing [66][68] Q&A Session Summary Question: Revenue growth for Xifaxan outpacing script growth - Management explained that the disconnect is due to a one-time benefit associated with gross-to-net accrual and strong new patient starts [30][32] Question: Dynamics of CMS pricing negotiations - Management confirmed ongoing fruitful negotiations with CMS and expects pricing to be published on November 30, 2025 [33][34] Question: Revised guidance and one-time factors - Management acknowledged one-time adjustments in Q3 but emphasized positive trends across the portfolio [40][41] Question: SG&A spending and future run rates - Management indicated that Q3 SG&A was unusually low due to non-recurring accrual changes, suggesting Q1 and Q2 as better indicators for future spending [42][43] Question: RED-C phase 3 results timeline - Management confirmed that both phase 3 studies will have a combined readout in early 2026, which will be the final readout for the program [45][46] Question: Impact of exiting the 340B program - Management highlighted the decision was made to optimize sales channels and enhance patient assistance programs [62][63] Question: Debt refinancing and deleveraging strategies - Management outlined plans to use free cash flow for debt servicing and mentioned potential asset sales as a means to support deleveraging [66][68]

Financial Performance - Bausch Health (excl B+L) achieved its 10th consecutive quarter of revenue and Adjusted EBITDA growth[18] - BHC (Excl B+L) reported revenue growth of 7% and organic revenue growth of 5% in 3Q25, reaching $1400 million[20] - BHC (Excl B+L) Adjusted EBITDA increased by 7% in 3Q25, including an $81 million Acquired IPR&D charge, reaching $773 million[21] - Consolidated revenue increased by 7% to $2681 million in 3Q25, with organic growth of 5%[26, 27] - Adjusted EBITDA attributable to Bausch Health Companies Inc increased by 8% to $986 million in 3Q25[27] - Adjusted Cash Flow from Operations was $508 million[27] Segment Performance - Salix segment reported revenue of $716 million, a 12% increase, with Xifaxan contributing significantly to growth[41, 42] - Solta Medical segment revenue increased by 25% to $140 million, driven by volume expansion across all geographies[55, 56] - Bausch + Lomb reported revenue of $1281 million, a 7% increase, with single-digit growth across all business segments[67] Guidance - The company raised its full-year 2025 Adjusted Operating Cash Flow guidance for Bausch Health (Excl B+L) to $0975 - $1025 billion[74]

Financial Performance - Total consolidated reported revenues for Q3 2025 were $2.68 billion, an increase of $171 million, or 7%, compared to Q3 2024[5]. - GAAP net income attributable to Bausch Health for Q3 2025 was $179 million, a significant increase of $264 million compared to a net loss of $85 million in Q3 2024[13]. - Consolidated adjusted EBITDA attributable to Bausch Health for Q3 2025 was $986 million, up 8% on a reported basis compared to Q3 2024, including an $81 million charge for acquired IPR&D[6]. - Product sales for Q3 2025 reached $2,657 million, a 7.1% increase from $2,482 million in Q3 2024[52]. - Total revenues for the nine months ended September 30, 2025, were $7,470 million, compared to $7,066 million for the same period in 2024, reflecting a 5.7% growth[52]. - Adjusted net income for Q3 2025 was $434 million, up from $415 million in Q3 2024, representing a 4.6% increase[53]. - The company reported a net income of $181 million for Q3 2025, compared to a net loss of $92 million in Q3 2024[52]. - Adjusted EBITDA for Q3 2025 reached $1,019 million, up from $939 million in Q3 2024, reflecting a 8.5% increase[60]. - Bausch Health's total revenues for the nine months ended September 30, 2025, were $7,470 million, a 6% increase from $7,066 million in the same period of 2024[65]. Segment Performance - The Salix segment reported revenues of $716 million for Q3 2025, a 12% increase from $642 million in Q3 2024, driven primarily by Xifaxan® with 16% revenue growth[8]. - The Solta Medical segment achieved revenues of $140 million for Q3 2025, reflecting a 25% increase compared to $112 million in Q3 2024, with strong growth in APAC[9]. - The diversified segment reported revenues of $258 million for Q3 2025, a decrease of 4% compared to $269 million in Q3 2024, with a 6% decline on an organic basis[10]. - The Neuro segment experienced a revenue decline of 14% in Q3 2025, with revenues of $146 million compared to $170 million in Q3 2024[63]. - Bausch + Lomb's total revenues for Q3 2025 were $1,281 million, down 19% from $1,196 million in Q3 2024[63]. Guidance and Future Outlook - Bausch Health raised its full-year 2025 revenue guidance to between $10.050 billion and $10.250 billion, reflecting a growth rate of 3% to 6% compared to the prior year[20]. - The company is on track for top-line Phase 3 results for the RED-C program, anticipated by early 2026, focusing on hepatic encephalopathy prevention[18]. - The company anticipates significant impacts from the Inflation Reduction Act (IRA) and the selection of Xifaxan® for drug price negotiations starting in 2027[24]. - The company expects uncertainties regarding the commercial success of new products and the impact of pricing controls on its business[25]. Cash and Liquidity - Consolidated cash and cash equivalents stood at $1.308 billion as of September 30, 2025, indicating a strong liquidity position[18]. - Cash provided by operating activities for the nine months ended September 30, 2025, was $905 million, compared to $996 million for the same period in 2024[67]. - Cash and cash equivalents increased to $1,308 million as of September 30, 2025, compared to $1,181 million at December 31, 2024[67]. Costs and Expenses - The cost of goods sold for Q3 2025 was $735 million, an increase from $682 million in Q3 2024, indicating a 7.8% rise[52]. - Research and development expenses for Q3 2025 were $166 million, compared to $146 million in Q3 2024, marking a 13.7% increase[52]. - Selling, general and administrative expenses for Q3 2025 were $795 million, down from $850 million in Q3 2024, a decrease of 6.5%[54]. - Interest expense for Q3 2025 was $412 million, up from $346 million in Q3 2024, reflecting an increase of 19.1%[55]. - The company incurred restructuring, integration, and transformation costs of $27 million in Q3 2025, compared to $5 million in Q3 2024, representing a significant increase[68]. - Litigation and other matters resulted in a net expense of $35 million in Q3 2025, down from $188 million in Q3 2024, showing a decrease of 81.6%[68]. Non-GAAP Measures - Adjusted EBITDA (non-GAAP) is used as a key metric for evaluating the company's performance, reflecting operational results without the impact of certain costs[34]. - The company has excluded costs related to share-based compensation and acquisition-related adjustments from its financial measures to provide a clearer view of operational performance[39]. - The company believes that its non-GAAP measures provide useful supplemental information for investors, despite not being standardized under GAAP[29]. - The company emphasizes that its Adjusted Net Income (non-GAAP) is significantly higher than its GAAP Net Income (loss), reflecting underlying performance trends[41]. - Adjusted EBITDA excluding Bausch + Lomb for the nine months ended September 30, 2025, was not specified but is a key metric for assessing operational performance[50]. - Adjusted cash flow from operations excluding Bausch + Lomb is a critical measure for evaluating the company's financial health[49].

Core Insights - Bausch Health reported third quarter consolidated revenues of $2.68 billion, reflecting a 7% increase on a reported basis and a 5% increase on an organic basis compared to the prior year [1] - The company achieved a GAAP net income attributable to Bausch Health of $179 million and a total GAAP net income of $181 million [1] - Consolidated adjusted EBITDA attributable to Bausch Health was $986 million, which includes an $81 million charge for acquired in-process research and development (IPR&D), marking an 8% increase on a reported basis year-over-year [1] - Excluding Bausch + Lomb, Bausch Health delivered its tenth consecutive quarter of year-over-year revenue and adjusted EBITDA growth, with reported revenue growth of 7% and adjusted EBITDA growth of 7% [1] - The company raised its full-year 2025 guidance for revenue, adjusted EBITDA, and adjusted cash flow from operations [1] - Bausch Health completed the acquisition of DURECT Corporation, enhancing its hepatology portfolio with the addition of Larsucosterol, a novel epigenetic modulator designated as a Breakthrough Therapy by the FDA for the treatment of alcohol-associated hepatitis [1]

Core Viewpoint - Bausch Health (BHC) is anticipated to report a year-over-year decline in earnings despite an increase in revenues for the quarter ending September 2025, with actual results being crucial for near-term stock price movements [1][2]. Earnings Expectations - The upcoming earnings report is scheduled for October 29, and better-than-expected key numbers could lead to a stock price increase, while a miss could result in a decline [2]. - The consensus estimate for quarterly earnings is $1.07 per share, reflecting a year-over-year decrease of 4.5%, while revenues are projected to be $2.6 billion, up 3.8% from the previous year [3]. Estimate Revisions - Over the last 30 days, the consensus EPS estimate has been revised down by 7.76%, indicating a reassessment by analysts [4]. - The Most Accurate Estimate for Bausch is higher than the Zacks Consensus Estimate, resulting in a positive Earnings ESP of +7.73%, suggesting a bullish outlook from analysts [12]. Historical Performance - In the last reported quarter, Bausch was expected to post earnings of $0.97 per share but delivered $0.90, resulting in a surprise of -7.22% [13]. - Over the past four quarters, Bausch has beaten consensus EPS estimates twice [14]. Predictive Indicators - A positive Earnings ESP is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1 (Strong Buy) or 2 (Buy) [10]. - Bausch currently holds a Zacks Rank of 2, indicating a higher likelihood of beating the consensus EPS estimate [12].

Core Viewpoint - Activist investor Jana Partners has acquired a stake in The Cooper Companies and is advocating for strategic alternatives, including a potential merger of its contact-lens division with Bausch + Lomb [1][2] Group 1: Strategic Moves - Jana Partners aims to unlock shareholder value by improving capital allocation and possibly separating Cooper's two distinct business segments [2] - The CEO of Bausch + Lomb has expressed openness to a merger, suggesting it would enhance competition in the global contact-lens market [3][4] Group 2: Financial Performance - CooperCompanies has increased its share repurchase program by $1 billion to a total of $2 billion [1] - CooperVision's third-quarter sales reached $718.4 million, a 6% increase year-over-year, with fourth-quarter sales expected between $700 million and $713 million [7] - CooperSurgical sales rose by 4% to $341.9 million, with fourth-quarter expectations between $350 million and $356 million [8] Group 3: Market Context - Cooper is valued at approximately $14 billion, while Bausch + Lomb has a market capitalization of around $5.3 billion [4][5] - The contact-lens market is competitive, with major players including Cooper, Johnson & Johnson, and Alcon [5]