On Tuesday, Valeant Pharmaceuticals Intl Inc (NYSE: VRX) announced its financial results for the second quarter. With earnings beating estimates, shares of the company increased 7.6% to $16.54 per share in morning trading on Tuesday after the announcement.
According to the company, total revenue for the second quarter decreased 8%, or $187 million, from the $2.42 billion in the same period last year, reaching $2.23 billion this year. The revenue result was roughly in line with analyst’ expectation of $2.23 billion. The company analyzed that the drop in revenue was mainly caused by decrease in their U.S. Diversified Products segment. Operating income increased $94 million for the second quarter to $175 million.
Excluding certain items, the company reported earnings of $1.05 per share, beating estimates of $0.94 per share. The better-than-expected results was motivated by the strong Xifaxan sales.
“The investments we are making in our core business are delivering results,” Joseph C. Papa, the chairman and chief executive officer of Valeant, said in the statement on Tuesday. “The Bausch + Lomb/International segment and Salix business, which together represented 73 percent of our revenue in the quarter, delivered strong organic growth1, and we are continuing to reduce debt and resolve legacy issues.”
“Additionally, we confirm that we are maintaining our 2017 full-year Adjusted EBITDA guidance range despite the impact of divestitures we've made this year,” he added.