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]

Revenue Performance - Total consolidated reported revenues for Q4 2024 were $2.56 billion, a 6% increase from $2.41 billion in Q4 2023, with organic revenue growth of 9%[4] - Full-year 2024 consolidated revenues reached $9.63 billion, up 10% from $8.76 billion in 2023, with organic revenue growth of 8%[4] - Product sales for Q4 2024 reached $2,528 million, a 6.1% increase from $2,382 million in Q4 2023[51] - Total revenues for the twelve months ended December 31, 2024, were $9,625 million, up 9.9% from $8,757 million in 2023[51] - Total revenues for Bausch Health Companies Inc. for the three months ended December 31, 2024, were $2.582 billion, an increase of 6% from $2.408 billion in 2023[64] - Bausch + Lomb's total revenue was $4,791 million, a 16% increase from $4,146 million in 2023[66] Segment Performance - The Salix segment reported Q4 revenues of $634 million, a 9% increase year-over-year, with organic growth of 12% after excluding divestitures[6] - The Solta Medical segment saw Q4 revenues of $138 million, a 34% increase, with organic growth of 35%[8] - The Bausch + Lomb segment reported Q4 revenues of $1.28 billion, a 9% increase, with organic growth of 10%[10] - Salix segment revenue reached $2,333 million, up 4% from $2,250 million in the previous year[66] - Solta Medical segment showed significant growth with revenue of $440 million, a 27% increase from $347 million in 2023[66] - Bausch Health's Pharmaceuticals segment revenue was $1,209 million, reflecting a 45% increase from $836 million in 2023[66] Profitability Metrics - Adjusted EBITDA for Q4 2024 was $935 million, an 8% increase from $869 million in Q4 2023, while full-year adjusted EBITDA was $3.31 billion, up 10% from $3.01 billion[16] - Consolidated net income for Q4 2024 was $93 million, compared to a net loss of $39 million in Q4 2023, marking a favorable change of $132 million[13] - Operating income for Q4 2024 was $558 million, compared to $362 million in Q4 2023, reflecting a 54.1% increase[51] - Adjusted net income for the twelve months ended December 31, 2024, was $1.394 billion, an increase from $1.274 billion in 2023, reflecting a growth of 9.4%[52] - Adjusted EBITDA for the twelve months ended December 31, 2024, was $3.425 billion, an increase from $3.110 billion in 2023, reflecting a growth of 10.1%[62] Cash Flow and Debt Management - Cash provided by operating activities was $601 million for Q4 2024, compared to $390 million in Q4 2023, reflecting improved business performance[16] - Cash provided by operating activities for the twelve months ended December 31, 2024, was $1,597 million, compared to $1,032 million in 2023[68] - Consolidated cash, cash equivalents, and restricted cash totaled $1.20 billion as of December 31, 2024[18] - Total long-term debt decreased to $21,616 million in 2024 from $22,388 million in 2023[68] - The company reported a total of $20,480 million in debt obligations for 2024, down from $21,006 million in 2023[68] - The company is exploring capital market options to address its debt maturity profile, potentially involving pledging shares in Bausch + Lomb[18] Guidance and Future Outlook - The Company provides full-year 2025 revenue guidance of $9.900 - $10.150 billion, with a revenue growth of 2% - 6% compared to the prior year[20] - Adjusted EBITDA guidance for 2025 is set at $3.525 - $3.675 billion, reflecting a growth of 3% - 7% year-over-year[20] - Adjusted Operating Cash Flow is projected to be between $0.975 - $1.025 billion for 2025[20] Research and Development - CABTREO®, a triple combination product for acne vulgaris, was launched in Canada in October 2024[22] - RED-C, aimed at preventing overt hepatic encephalopathy, is on track for top-line Phase 3 results by early 2026[22] - Amiselimod, a treatment for ulcerative colitis, has met with major regulatory bodies and is awaiting feedback[22] - Thermage® FLX and Clear + Brilliant® Touch are undergoing regulatory approval processes in multiple countries, including Canada and Europe[22] - Research and development expenses for the twelve months ended December 31, 2024, totaled $616 million, slightly up from $604 million in 2023[51] - Research and development expenses for the three months ended December 31, 2024, were $163 million, slightly up from $152 million in 2023, reflecting a growth of 7.2%[54] Non-GAAP Measures - The Company emphasizes the importance of non-GAAP measures for evaluating performance and setting operational goals[29] - Adjusted EBITDA attributable to Bausch Health (non-GAAP) is used to provide a clearer picture of operational performance, excluding nonrecurring items[38] - Adjusted net income (non-GAAP) is utilized for strategic decision-making and evaluating performance trends, highlighting the company's focus on underlying operational results[42] - The company excluded acquisition-related costs and adjustments from its financial results to provide a clearer view of ongoing operations[39] - The Company does not provide reconciliations of projected Adjusted EBITDA to GAAP net income due to forecasting difficulties[20] Cost Management - The company reported a cost of goods sold of $711 million in Q4 2024, compared to $695 million in Q4 2023, indicating a 2.3% increase[51] - Bausch Health's adjusted cost of goods sold for the twelve months ended December 31, 2024, was $2.647 billion, compared to $2.496 billion in 2023, an increase of 6%[54] - Selling, general and administrative expenses for the twelve months ended December 31, 2024, totaled $3.296 billion, compared to $2.917 billion in 2023, marking a 13% increase[54] - The adjusted selling, general and administrative expenses for the three months ended December 31, 2024, were $795 million, up from $740 million in 2023, indicating a rise of 7.4%[54] Tax and Impairments - The company reported a provision for income taxes of $111 million for the three months ended December 31, 2024, compared to $40 million in 2023[62] - The company reported goodwill impairments of $91 million for the three months ended December 31, 2023, which were eliminated in 2024[55] - The company reported a tax effect of non-GAAP adjustments amounting to $(57) million for the twelve months ended December 31, 2024, compared to $25 million in 2023[55]

Analysts on Wall Street project that Bausch Health (BHC) will announce quarterly earnings of $1.12 per share in its forthcoming report, representing a decline of 2.6% year over year. Revenues are projected to reach $2.51 billion, increasing 4.3% from the same quarter last year.Over the last 30 days, there has been an upward revision of 0.8% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial forecasts ...

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 December 2024, with actual results being a significant factor influencing its near-term stock price [1][2]. Earnings Expectations - The consensus estimate for Bausch's quarterly earnings is $1.12 per share, reflecting a year-over-year decrease of 2.6%, while revenues are projected to reach $2.51 billion, representing a 4.3% increase from the previous year [3]. Estimate Revisions - Over the last 30 days, the consensus EPS estimate has been revised 0.75% higher, indicating a collective reassessment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that the Most Accurate Estimate for Bausch is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -0.74%, indicating a bearish outlook from analysts [10][11]. Historical Performance - In the last reported quarter, Bausch exceeded the expected earnings of $1.03 per share by delivering $1.12, achieving a surprise of +8.74%. Over the past four quarters, the company has beaten consensus EPS estimates twice [12][13]. Investment Considerations - Despite the potential for an earnings beat, Bausch does not appear to be a compelling candidate for such an outcome, and investors should consider other factors before making investment decisions [14][16].

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Bausch Health (BHC) closed the last trading session at $7.57, gaining 3.1% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $9.50 indicates a 25.5% upside potential.The average comprises six short-term price targets ranging from a low of $6 to a high of $12, with a standard deviation of $2.59. While the lowest estimate indicates a decline of 20.7% from the current price level, the m ...