The Quebec, Canada-based company reported a second quarter net loss of 302.3 million, or -88 cents per share. Analysts had expected a profit of $1.61 per share.
Revenue fell 11.4% from last year to $2.42 billion, also missing estimates of $2.59 billion.
Despite the very weak quarter, VRX left its forecast in tact. Looking ahead, the company reiterated its prior full-year outlook for EPS of $6.60 to $7.00 on revenue of $9.9 billion to $10.1 billion.
From the press release:
“We continue to make progress towards stabilizing the organization,” said Joseph C. Papa, chairman and chief executive officer. “We are also announcing a new strategic direction for Valeant today, which, at its heart has a mission to improve patients’ lives, and will involve reorganizing our company and reporting segments. I am continuously encouraged by the commitment of our employees who work hard daily, rebuilding our relationships with prescribers, patients and payors, and regaining the trust of our debt holders and shareholders. Although it will take time to implement and execute our turnaround plan, I am confident that we will show progress in the coming quarters.”
The company didn’t offer and details around its turnaround plan, but investors certainly cheered the announcement.
Valeant shares, which have plunged 78% since the start of 2016 amid a drug pricing scandal, rose $1.40 (+6.24%) to $23.85 in premarket trading Tuesday.