Bausch Health Q2 Loss Widens, Misses on Revenue

Bausch Health Company Inc (BHC) posted a wider loss in the second quarter of 2021 than a year ago. The manufacturer of health care products announced plans to pursue an initial public offering for its Solta Medical business.

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Revenue came in at $2.10 billion for the quarter ended June 30, an increase of 26% from $1.66 billion recorded in the prior-year quarter. However, it missed consensus estimates by $20 million.

Furthermore, the company reported a GAAP net loss of $595 million ($1.66 per diluted share) in Q2 2021, compared to a loss of $326 million ($0.92 per diluted share) in Q1 2020. Analysts had expected to report earnings of $0.95 per share.

Adjusted EBITDA (non-GAAP) was $826 million for the second quarter, up from $622 million in the same quarter last year.

Commenting on the Solta purchase, Bausch Health’s chairman and CEO Joseph C. Papa said, “Today we announced our plans to pursue an initial public offering for our Solta Medical business, which is an important step in the previously announced spinoff of the Bausch + Lomb eye health business, resulting in the creation of three attractive companies: Bausch + Lomb, a pure-play, integrated eye health company; Bausch Pharma, a global diversified pharmaceuticals business; and Solta Medical, a leading global provider in medical aesthetics. We remain committed to unlocking value across these three attractive businesses as soon as possible.”

The company announced that Thomas J. Appio has been appointed CEO of Bausch Pharma. In addition, Bausch Health has revised forecast ranges for revenue for fiscal 2021 and adjusted EBITDA (non-GAAP), mainly to reflect the disposal of Amoun Pharmaceutical.

Full-year revenue range is now revised from $8.60- $8.80 billion to $8.40- $8.60 billion, while full-year adjusted EBITDA (Non-GAAP) range of $3.40-$3.55 billion has been decreased to $3.35-$3.50 billion. (See Bausch Health Companies stock charts on TipRanks)

Last week, RBC Capital analyst Douglas Miehm maintained a Buy rating on BHC and set a price target of $41 (C$51.27). This implies 55.2% upside potential.

Overall, consensus on the Street is that BHC is a Moderate Buy based on 5 Buys, 1 Hold, and 1 Sell. The average Bausch Health price target of C$46.04 implies 39% upside potential to current levels.