Valeant Pharmaceuticals (VRX) Stock: Gaining On Earnings And Rumors

Valeant Pharmaceuticals Intl Inc (NYSE: VRX) is having an overwhelmingly strong time in the pre-market hours, which is interesting considering that the company reported its second quarter earnings, and while the report showed a further decline in revenue, investors are taking it as positive. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. At the moment (8:03), VRX is trading at $16.32 per share after a gain of $0.95 per share or 6.18% thus far today.

VRX Gains Following Earnings Report

As mentioned above, Valeant Pharmaceuticals is finding its way upward following the release of Q2 earnings. Also, there are suggestions that a takeover may be in the works as a rumor runs around the street. We’ll get into that in a minute, but for now, here’s what we saw from the earnings report…

  • Earnings Per Share – In terms of earnings per share, VRX simply didn’t generate earnings. During the quarter, the company generated a loss of $0.11 per share. While this was ahead of the loss of $0.88 per share seen a year ago. Nonetheless, the figure did come ahead of consensus estimates.
  • Revenue – While earnings were a bust, revenue came in relatively positive. During the quarter, analysts expected that the company would generate a total of $2.228 million in revenue. However, the company actually reported revenue in the amount of $2.33 million. Unfortunately, this showed a revenue decline year over year from $2.42 million.
  • Guidance – Finally, VRX reduced its full year revenue guidance from the range between $8.90 million and $9.10 million to the range between $8.70 million and $8.90 million.

Is An Acquisition Coming

I’ve noticed various posts on social media that suggest that an acquisition is coming for VRX. Nonetheless, the rumor is overwhelmingly vague. It doesn’t suggest a price on the takeover, nor does it suggest who the company, or private equity player might be that’s interested. As a result, I wouldn’t get my hopes up. After all, we see acquisition rumors in the market all the time!

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What We’ll Be Watching For Ahead

Moving forward, the CNA Finance team will be keeping a close eye on VRX. In particular, we’ll be watching to see if a takeover does indeed happen. While we don’t believe this will be the case, anything can happen in the market. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!

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