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Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.Zacks Premium includes access to the Zacks Style Scores as well.What are the Zacks Style Scores?The Zac ...

Bausch Health Companies Inc.'s (BHC) fourth-quarter results were better than expected. The company’s adjusted earnings per share of $1.15 beat the Zacks Consensus Estimate of $1.01. The reported figure also increased from $1.02 in the year-ago quarter.Total revenues of $2.41 billion were up 10% year over year. The top line beat the Zacks Consensus Estimate of $2.25 billion.Excluding the favorable impact of foreign exchange rates of $6 million and the impact of acquisitions worth $122 million, revenues incre ...

Bausch Health Companies Inc. (NYSE:BHC) Q4 2023 Earnings Conference Call February 22, 2024 8:00 AM ET Company Participants Thomas Appio - Chief Executive Officer John Barresi - Senior Vice President, Chief Financial Officer (interim) Maria Likuris - Investor Relations Conference Call Participants Glen Santangelo - Jefferies Schuyler van den Broek - Piper Sandler James - Evercore ISI Chi - Bank of America Douglas Miehm - RBC Capital Markets Michael Nedelcovych - TD Cowen Operator Greetings. Welcome to the Ba ...

For the quarter ended December 2023, Bausch Health (BHC) reported revenue of $2.41 billion, up 9.8% over the same period last year. EPS came in at $1.15, compared to $1.02 in the year-ago quarter.The reported revenue represents a surprise of +7.15% over the Zacks Consensus Estimate of $2.25 billion. With the consensus EPS estimate being $1.01, the EPS surprise was +13.86%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street e ...

Bausch Health (BHC) came out with quarterly earnings of $1.15 per share, beating the Zacks Consensus Estimate of $1.01 per share. This compares to earnings of $1.02 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 13.86%. A quarter ago, it was expected that this drugmaker would post earnings of $0.92 per share when it actually produced earnings of $1.03, delivering a surprise of 11.96%.Over the last four quarters, the company h ...

Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? Bausch Health (BHC) , which belongs to the Zacks Medical - Generic Drugs industry, could be a great candidate to consider.This drugmaker has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two quarters was 9.98%.For the most recent quarter, Bausch was expected to p ...

Revenue and Financial Performance - Total revenues for 2023 were $8,757 million, an increase from $8,124 million in 2022 and $8,434 million in 2021[27]. - The Salix segment generated $2,250 million in revenue for 2023, maintaining a 26% share of total revenues, consistent with 2022[27]. - The Bausch + Lomb segment accounted for $4,146 million in revenue, representing 47% of total revenues, up from 46% in 2022[27]. - Xifaxan product revenues were $1,810 million in 2023, compared to $1,692 million in 2022 and $1,644 million in 2021[30]. - In 2023, the U.S. and Puerto Rico accounted for approximately 59% of total revenue, while China accounted for approximately 5%[78]. - Cencora Inc. accounted for 19% of total revenue in 2023, followed by McKesson Corporation at 15% and Cardinal Health, Inc. at 13%[79]. Research and Development - The company is focusing on R&D to enhance its product portfolio and is exploring co-promotions, licensing agreements, and strategic acquisitions[26]. - R&D expenses for 2023 were $604 million, representing approximately 7% of revenue, up from $529 million (7%) in 2022 and $465 million (6%) in 2021[45]. - The company has over 90 R&D projects in the pipeline, supported by approximately 1,450 dedicated R&D and quality assurance employees[44]. - CABTREO Topical Gel, a new acne treatment, received FDA approval and is set to launch in Q1 2024[39]. - MIEBO, the first FDA-approved eye drop targeting tear evaporation, was launched in the U.S. in Q3 2023[42]. Market and Competitive Landscape - The company faces increased competition from generic pharmaceutical products as patents expire, leading to potential price reductions[85]. - The company is impacted by global economic conditions, including inflation and foreign currency exchange volatility, which may affect revenues and expenses[704]. - The company is facing risks related to the introduction of generic competitors, particularly for its Xifaxan product line, which could significantly impact revenues[704]. Regulatory and Compliance - The company is subject to extensive regulations regarding the research, development, and marketing of its products, requiring substantial time and financial resources[50]. - Compliance with the U.S. Foreign Corrupt Practices Act and similar laws is mandatory, with violations potentially leading to significant penalties[58]. - The company is subject to various state, federal, and international laws regarding the processing of health-related and personal information, including HIPAA, which mandates uniform standards for electronic information exchange[59]. - The GDPR imposes strict obligations on the processing of personal data, with potential fines of up to 4% of global annual revenue or €20 million for violations[62]. - The company is subject to environmental regulations that could result in substantial fines or penalties if compliance is not maintained[76]. Operational Efficiency and Manufacturing - The company operates approximately 37 manufacturing sites worldwide, with 25 being Bausch + Lomb facilities[87]. - In 2023, 25% of product sales were produced in total or in part by third-party manufacturers[91]. - The company continues to invest in its manufacturing facilities to enhance operational capabilities[87]. Financial Obligations and Liabilities - As of December 31, 2023, the company had $15,108 million in fixed rate debt and $5,899 million in variable rate debt[642]. - A 1% change in foreign currency exchange rates would have impacted the shareholders' deficit by approximately $62 million[639]. - The company faces substantial debt obligations and potential future indebtedness, impacting its financial condition and cash flows[700]. - The company is subject to various loss contingencies, which may materially affect its financial condition and cash flows[687]. Goodwill and Impairment - The company recorded goodwill impairment charges of $493 million in 2023, $824 million in 2022, and $469 million in 2021[663]. - The carrying value of the Generics reporting unit exceeded its fair value as of October 1, 2023, leading to a recognized goodwill impairment[676]. - The Dermatology reporting unit experienced a goodwill impairment of $151 million due to lower realized pricing and increased market interest rates, with a long-term growth rate of 0.0% and a discount rate of 10.75% used in the assessment[671]. Strategic Initiatives and Future Outlook - The company is committed to improving access to medications through patient assistance programs, providing eligible patients with prescription products at no cost for up to one year[109]. - The company is evaluating the potential effects of macroeconomic factors, including inflation, on its business operations[698]. - The company anticipates uncertainties associated with the launch of new products, including the Blink product line and MIEBO, affecting market acceptance and demand[701]. - The company is working to stabilize its Dermatology business, focusing on the success of recently launched products and pipeline approvals[702].

[Fourth-Quarter and Full-Year 2023 Financial Highlights](index=1&type=section&id=BAUSCH%20HEALTH%20ANNOUNCES%20FOURTH-QUARTER%20AND%20FULL-YEAR%202023%20RESULTS) This section summarizes Bausch Health's financial performance for Q4 and full-year 2023, highlighting revenue growth, CEO commentary, and R&D updates [Performance Summary](index=1&type=section&id=Fourth-Quarter%20and%20Full-Year%202023%20Performance%20Summary) Bausch Health reported significant revenue growth for Q4 and full-year 2023, with reported increases of **10%** and **8%** respectively, alongside organic revenue growth and stable Adjusted EBITDA despite a GAAP Net Loss Q4 and Full-Year 2023 Key Financial Metrics | Metric | Q4 2023 | Full-Year 2023 | | :--- | :--- | :--- | | **Revenues** | $2.41 billion | $8.76 billion | | Reported Revenue Growth | 10% | 8% | | Organic Revenue Growth (non-GAAP) | 4% | 7% | | **GAAP Net Loss Attributable to BHC** | $39 million | $592 million | | **Adjusted EBITDA Attributable to BHC (non-GAAP)** | $869 million | $3.0 billion | - Full-year 2023 reported revenues increased by **$633 million** to **$8.76 billion**, an **8%** increase over 2022, with organic revenue growing by **7%**[17](index=17&type=chunk) - Fourth-quarter 2023 reported revenues increased by **$215 million** to **$2.41 billion**, a **10%** increase over Q4 2022, with organic revenue growing by **4%**[17](index=17&type=chunk) [CEO Commentary](index=1&type=section&id=CEO%20Commentary) The CEO affirmed meeting 2023 financial guidance, noting progress in business segments, balance sheet, and R&D, positioning the company for continued growth in 2024 - CEO Thomas J. Appio stated the company delivered against its 2023 financial guidance and made meaningful progress across business segments, balance sheet management, and R&D initiatives[24](index=24&type=chunk) - The company's focus for 2024 includes advancing the pipeline, investing in growth initiatives, and positioning for long-term success[24](index=24&type=chunk) [R&D and Regulatory Update](index=1&type=section&id=Bausch%20Health%20(excl.%20B%2BL)%20R%26D%20Update) Bausch Health provided R&D updates, including positive Phase 2 data for Amiselimod, progress on RED-C Phase 3 trials, and recent regulatory approvals and launches for CABTREO and Thermage® FLX - **Amiselimod (S1P modulator):** Positive topline data from the Phase 2 study for mild to moderate ulcerative colitis was announced in December 2023[24](index=24&type=chunk) - **RED-C:** Enrollment for one of two global Phase 3 trials for hepatic encephalopathy is complete, with the second trial expected to complete enrollment in H1 2024[24](index=24&type=chunk) - **CABTREO:** Received FDA approval on October 20, 2023, for acne vulgaris, with the U.S. commercial launch in late January 2024[25](index=25&type=chunk) - **Thermage® FLX:** The device and its TR-4 Return Pad were approved by China's National Medical Products Administration in January 2024[25](index=25&type=chunk) - **Next Generation Fraxel®:** An FDA submission is planned for Q2 2024, with potential approval in the second half of 2024[25](index=25&type=chunk) [Detailed Financial Performance](index=3&type=section&id=Detailed%20Financial%20Performance) This section provides a detailed analysis of Bausch Health's revenue by segment, operating performance, net loss, Adjusted EBITDA, and cash flow for 2023 [Revenue Performance by Segment](index=3&type=section&id=Fourth-Quarter%20and%20Full-Year%202023%20Revenue%20Performance) Bausch Health achieved full-year 2023 revenue growth across most segments, notably Solta Medical (**16%**) and Bausch + Lomb (**10%**), with Bausch + Lomb also leading Q4 growth at **18%** Full-Year 2023 Revenue by Segment (in millions) | Segment | 2023 Revenue | 2022 Revenue | Reported Change | Organic Change (non-GAAP) | | :--- | :--- | :--- | :--- | :--- | | **Total Bausch Health** | **$8,757** | **$8,124** | **+8%** | **+7%** | | Salix | $2,250 | $2,090 | +8% | +8% | | International | $1,071 | $988 | +8% | +6% | | Solta Medical | $347 | $300 | +16% | +18% | | Diversified Products | $943 | $978 | -4% | -3% | | Bausch + Lomb | $4,146 | $3,768 | +10% | +8% | Q4 2023 Revenue by Segment (in millions) | Segment | Q4 2023 Revenue | Q4 2022 Revenue | Reported Change | Organic Change (non-GAAP) | | :--- | :--- | :--- | :--- | :--- | | **Total Bausch Health** | **$2,408** | **$2,193** | **+10%** | **+4%** | | Salix | $583 | $581 | 0% | 0% | | International | $290 | $261 | +11% | +6% | | Solta Medical | $103 | $99 | +4% | +5% | | Diversified Products | $259 | $256 | +1% | +2% | | Bausch + Lomb | $1,173 | $996 | +18% | +7% | - Full-year sales growth in the Salix segment was primarily driven by Xifaxan®, Relistor®, and Trulance®[18](index=18&type=chunk) [Operating Performance and Net Loss](index=4&type=section&id=Consolidated%20Operating%20Income%20(Loss)) Consolidated operating income significantly improved to **$963 million** in 2023 due to decreased goodwill impairments, though net loss attributable to Bausch Health widened to **$592 million** primarily from lower gains on debt extinguishment - Consolidated operating income for full-year 2023 was **$963 million**, a **$509 million** increase from **$454 million** in 2022[21](index=21&type=chunk) - The improvement in operating income was driven by a **$435 million** increase in contribution and decreases in Goodwill impairments (**$331 million**) and Amortization of intangible assets (**$138 million**), partially offset by higher SG&A and R&D expenses[21](index=21&type=chunk) - Net loss attributable to Bausch Health was **$592 million** for the full year 2023, an unfavorable change from a **$225 million** loss in 2022, primarily due to lower gains on the extinguishment of debt compared to the prior year[56](index=56&type=chunk) GAAP Loss Per Share | Period | 2023 | 2022 | | :--- | :--- | :--- | | **Q4** | ($0.11) | ($1.13) | | **Full Year** | ($1.62) | ($0.62) | [Adjusted EBITDA and Net Income (non-GAAP)](index=5&type=section&id=Adjusted%20EBITDA%20attributable%20to%20Bausch%20Health%20(non-GAAP)) Adjusted EBITDA attributable to Bausch Health increased **6%** to **$869 million** in Q4 2023, remaining nearly flat at **$3.014 billion** for the full year, with Adjusted Net Income also showing increases Adjusted EBITDA Attributable to Bausch Health (non-GAAP) | Period | 2023 | 2022 | Change | | :--- | :--- | :--- | :--- | | **Q4** | $869 million | $823 million | +$46 million | | **Full Year** | $3,014 million | $3,022 million | -$8 million | Adjusted Net Income Attributable to Bausch Health (non-GAAP) | Period | 2023 | 2022 | Change | | :--- | :--- | :--- | :--- | | **Q4** | $406 million | $372 million | +$34 million | | **Full Year** | $1,274 million | $1,113 million | +$161 million | [Cash Flow and Balance Sheet](index=5&type=section&id=Cash%20Provided%20by%20(Used%20in)%20Operating%20Activities) Cash provided by operating activities significantly improved to **$1.032 billion** in 2023, with the company holding **$962 million** in cash and equivalents and substantial revolving credit facility availability - Cash provided by operating activities was **$1,032 million** for the full year 2023, a significant improvement from the **$728 million** used in operating activities in 2022[58](index=58&type=chunk)[92](index=92&type=chunk) - As of December 31, 2023, the company had **$962 million** in cash, cash equivalents, and restricted cash[59](index=59&type=chunk) - At year-end, Bausch Health (excl. B+L) had approximately **$950 million** available under its revolving credit facility, and Bausch + Lomb had approximately **$199 million** available[59](index=59&type=chunk) [2024 Financial Outlook](index=5&type=section&id=2024%20Financial%20Outlook) This section outlines Bausch Health's financial projections for the full year 2024, including revenue and Adjusted EBITDA guidance for the consolidated entity and its segments [2024 Financial Guidance](index=5&type=section&id=2024%20Financial%20Guidance) Bausch Health projects full-year 2024 total revenues between **$9.300 billion** and **$9.550 billion** and Adjusted EBITDA between **$3.20 billion** and **$3.35 billion**, with **2%-5%** organic revenue growth for Bausch Health (excl. B+L) Full-Year 2024 Guidance (as of Feb. 22, 2024) | Metric (in Billions) | BHC | BHC (excl. B+L) | B+L | | :--- | :--- | :--- | :--- | | **Revenues** | $9.300 – $9.550 | $4.700 – $4.850 | $4.600 - $4.700 | | **Adjusted EBITDA (non-GAAP)** | $3.20 - $3.35 | $2.36 - $2.46 | $0.84 – $0.89 | - The company projects **2%-5%** organic revenue growth for Bausch Health (excluding B+L) versus the prior year[35](index=35&type=chunk) - The company does not provide a reconciliation of forward-looking Adjusted EBITDA to GAAP net income due to the inherent difficulty in forecasting certain items like restructuring costs and litigation matters[59](index=59&type=chunk)[60](index=60&type=chunk) [Non-GAAP Financial Measures](index=7&type=section&id=Non-GAAP%20Information) This section explains the rationale and specific definitions for Bausch Health's non-GAAP financial measures, including Adjusted EBITDA, Adjusted Net Income, and Organic Revenue [Explanation of Non-GAAP Measures](index=7&type=section&id=Explanation%20of%20Non-GAAP%20Measures) The company uses non-GAAP measures like Adjusted EBITDA and Organic Revenue to provide supplemental information, believing they are key for evaluating operational performance and investor assessment by excluding certain items - Management uses non-GAAP measures as key metrics to evaluate performance, determine executive cash bonuses, and provide supplemental information to investors[40](index=40&type=chunk) - The company cautions that its non-GAAP measures may not be comparable to those of other companies and should be considered as a supplement to, not a substitute for, GAAP measures[65](index=65&type=chunk) [Specific Non-GAAP Definitions](index=8&type=section&id=Specific%20Non-GAAP%20Measures) Key non-GAAP metrics are defined, with Adjusted EBITDA adjusting GAAP Net Income for various non-operating items, Adjusted Net Income making similar adjustments, and Organic Revenue normalizing for currency and M&A impacts - **Adjusted EBITDA (non-GAAP):** Defined as Net income (loss) adjusted for interest expense, taxes, depreciation, amortization, and other specific items such as goodwill impairments, restructuring costs, and acquisition-related costs[42](index=42&type=chunk)[43](index=43&type=chunk) - **Adjusted Net Income (non-GAAP):** Defined as Net income adjusted for items including asset/goodwill impairments, restructuring costs, acquisition-related costs, gain/loss on debt extinguishment, and amortization of intangible assets[45](index=45&type=chunk) - **Organic Revenue (non-GAAP):** Defined as GAAP Revenue adjusted for changes in foreign currency exchange rates and excluding the impact of recent acquisitions, divestitures, and discontinuations to allow for a supplemental period-to-period comparison[4](index=4&type=chunk) [Financial Statements and Reconciliations](index=12&type=section&id=FINANCIAL%20TABLES%20FOLLOW) This section presents Bausch Health's consolidated financial statements, including statements of operations, reconciliations of GAAP net loss to Adjusted EBITDA, organic revenue growth, and a summary of the balance sheet and debt [Consolidated Statements of Operations (Unaudited)](index=13&type=section&id=Consolidated%20Statements%20of%20Operations) For 2023, Bausch Health reported total revenues of **$8.757 billion** and a net loss of **$611 million**, compared to **$8.124 billion** revenue and **$212 million** net loss in 2022 Consolidated Statements of Operations (in millions) | Line Item | Twelve Months Ended Dec 31, 2023 | Twelve Months Ended Dec 31, 2022 | | :--- | :--- | :--- | | **Total Revenues** | **$8,757** | **$8,124** | | Total Expenses | $7,794 | $7,670 | | **Operating Income** | **$963** | **$454** | | Loss before income taxes | ($390) | ($129) | | **Net Loss** | **($611)** | **($212)** | | **Net Loss Attributable to BHC Inc.** | **($592)** | **($225)** | [Reconciliation of GAAP Net Loss to Adjusted EBITDA (non-GAAP)](index=18&type=section&id=Reconciliation%20of%20GAAP%20Net%20Loss%20to%20Adjusted%20EBITDA%20(non-GAAP)) A GAAP Net Loss of **$611 million** for full-year 2023 was reconciled to an Adjusted EBITDA of **$3.110 billion**, with **$3.014 billion** attributable to Bausch Health after noncontrolling interest adjustments Full-Year GAAP Net Loss to Adjusted EBITDA Reconciliation (in millions) | Line Item | 2023 | 2022 | | :--- | :--- | :--- | | **Net Loss (GAAP)** | **($611)** | **($212)** | | Interest expense, net | $1,302 | $1,450 | | Provision for income taxes | $221 | $83 | | Depreciation and amortization | $1,264 | $1,394 | | **EBITDA** | **$2,176** | **$2,715** | | Goodwill impairments | $493 | $824 | | Other Adjustments... | ... | ... | | **Adjusted EBITDA (non-GAAP)** | **$3,110** | **$3,080** | | Adjusted EBITDA attributable to noncontrolling interest | ($96) | ($58) | | **Adjusted EBITDA attributable to BHC Inc. (non-GAAP)** | **$3,014** | **$3,022** | [Organic Revenue Growth (non-GAAP) by Segment](index=19&type=section&id=Organic%20Growth%20(non-GAAP)%20-%20by%20Segment) The report details the reconciliation of reported to organic revenues, showing full-year 2023 total reported revenue of **$8.757 billion** adjusted to **$8.661 billion** organic revenue, representing **7%** growth Full-Year 2023 Organic Revenue Reconciliation (in millions) | Description | Amount | | :--- | :--- | | **Total Reported Revenue 2023** | **$8,757** | | Impact of Foreign Exchange | $45 | | Impact of Acquisitions | ($141) | | **Organic Revenue 2023 (non-GAAP)** | **$8,661** | | Total Reported Revenue 2022 | $8,124 | | Impact of Divestitures/Discontinuations | ($22) | | **Organic Revenue 2022 (non-GAAP)** | **$8,102** | | **Change in Organic Revenue** | **+$559 (+7%)** | [Balance Sheet and Debt Summary](index=21&type=section&id=Other%20Financial%20Information) As of December 31, 2023, total long-term debt increased to **$21.006 billion**, while cash and cash equivalents rose to **$947 million**, with significant debt maturities in 2025, 2027, and 2028 Key Balance Sheet Items (in millions) | Item | Dec 31, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | Cash and cash equivalents | $947 | $564 | | Total long-term debt and other | $21,006 | $19,110 | - The company's total debt obligations increased by approximately **$1.9 billion** from year-end 2022 to year-end 2023[12](index=12&type=chunk) Maturities of Debt Obligations (in millions) | Year | Amount | | :--- | :--- | | 2024 | $155 | | 2025 | $2,790 | | 2026 | $892 | | 2027 | $6,748 | | 2028 | $7,219 | | 2029 - 2031 | $3,202 |

We are in the last leg of the fourth-quarter 2023 reporting cycle and a lot of pharma and biotech bigwigs have already reported results. The picture looks reasonably good. Bellwether J&J reported strong fourth-quarter results, wherein its earnings and sales beat their respective estimates. Swiss pharma giant Novartis’ sales and earnings lagged their respective estimates.Among the biotechs, Biogen reported lower-than-expected results for the fourth quarter, as both its earnings and sales missed estimates. Gi ...