Bausch Health Misses Estimates In 1Q; Shares Plunge 10%

Shares of Bausch Health Company Inc (BHC) fell more than 10% in early trading Tuesday after the manufacturer of health care products posted disappointing first-quarter results.

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Bausch Health’s revenue came in at nearly $2.03 billion for the quarter ended March 31, an increase of 1% from $2.01 billion in the prior-year quarter. It missed consensus estimates by $30 million.

The company reported a loss of $610 million ($1.71 per diluted share) in 1Q 2021, compared to a loss of $152 million ($0.43 per diluted share) in 1Q 2020. It missed estimates by $1.55.

On an adjusted basis, Bausch Health earned $370 million for the quarter, up from an adjusted profit of $316 million in the prior-year period.

Bausch Health’s chairman and CEO Joseph C. Papa said, “Bausch Health entered 2021 with strong momentum as our recovery from the COVID-19 pandemic continues. Our business is generating strong cash flow, many of our leading products have increased market share in key markets, and we are advancing our pipeline.”

“We are taking action to accelerate the strategic alternatives process to expedite the spinoff of Bausch + Lomb as we remain committed to unlocking value across our two attractive businesses. We are focused on execution and growth as we position these two strong but dissimilar businesses as attractive growth opportunities in the markets they serve,” added Mr. Papa. (See Bausch Health Companies Inc stock analysis on TipRanks.)

Last week, RBC Capital analyst Douglas Miehm maintained a Buy rating on the stock and set a price target of $42.00 (C$51.61) for a 48.6% upside potential.

Overall, the consensus on the Street is that BHC is a Moderate Buy based on 6 Buys, 3 Holds, and 1 Sell. The average analyst price target of C$45.47 implies a 30% upside potential to current levels.

On top of that, BHC scores 4 out of 10 on TipRanks’ Smart Score rating system, implying it is likely to perform in line with the overall market.