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Bausch Health Beats on Q4 Earnings and Revenues, Xifaxan Boosts Sales
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Shares of Bausch Health Companies Inc. (BHC - Free Report) gained 2.36% after the company reported better-than-expected fourth-quarter results. Shares also gained 7.8% in aftermarket trading.
Adjusted earnings per share of $1.15 beat the Zacks Consensus Estimate of $1.12. The earnings were flat year over year.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Total revenues of $2.56 billion were up 6% year over year. The top line also beat the Zacks Consensus Estimate by 1.89%.
Excluding the impact of foreign exchange of $28 million, acquisitions of $5 million and divestitures and discontinuations of $29 million, revenues increased 9% organically.
BHC’s shares have lost 24.3% year to date against the industry’s growth of 3.1%.
Image Source: Zacks Investment Research
BHC's Q4 Quarter in Detail
The company reports revenues under five segments — Salix, International, Diversified Products, Solta Medical and Bausch + Lomb.
Salix revenues totaled $634 million, up 9% year over year. Within this segment, Xifaxan revenues were up 16%, led by strong growth in underlying demand. Trulance revenues were up 6% while Relistor revenues were down 9%.
Xifaxan 550 mg tablets are indicated for the reduction in the risk of overt hepatic encephalopathy recurrence and the treatment of IBS-D in adults.
Salix revenues beat the Zacks Consensus Estimate of $598 million and our model estimate of $589.7 million.
International revenues totaled $279 million, down 4% year over year due to a decline in Latin America. The figure missed both the Zacks Consensus Estimate of $294 million and our model estimate of $291.3 million. Revenues increased 1% organically (excluding the impact of foreign exchange and divestitures and discontinuations), driven by solid growth in Canada and EMEA.
Solta Medical reported revenues of $138 million, up 34% year over year. The figure beat the Zacks Consensus Estimate of $115 million and our model estimate of $110.7 million. Revenues were up 35% organically, primarily driven by South Korea and China.
Diversified Product revenues amounted to $228 million, down 12% from the year-ago level.
Neurology posted a 1% year-over-year increase. Sales from the Dentistry business were down 17% year over year. The Generics business was down 68%. The Dermatology business was down 13% as the launch of Cabtreo was offset by discontinuations and pricing.
Cabtreo (fixed-dose, triple-combination topical treatment for acne vulgaris) was approved in Canada in the third quarter and launched in October 2024.
Diversified Product revenues missed the Zacks Consensus Estimate of $253 million and our model estimate of $271.4 million.
Revenues from Bausch + Lomb totaled $1.3 billion, up 9% year over year. The figure beat both the Zacks Consensus Estimate and our model estimate of $1.2 billion. Bausch + Lomb’s revenues increased 10% organically on a year-over-year basis, driven by growth across all business units.
BHC’s 2024 Results
Revenues amounted to $9.62 billion, which rose 10% year over year and surpassed the Zacks Consensus Estimate of $9.58 billion.
Adjusted earnings per share of $3.75 beat the Zacks Consensus Estimate of $3.73.
BHC's Pipeline Development
The phase II study on amiselimod, a new oral S1P receptor modulator that targets the treatment of mild to moderate ulcerative colitis (UC), completed enrollment. BHC also submitted a draft protocol to the FDA for a phase III study for moderate to severe UC patients. The company met all major regulatory bodies and feedback is under review.
The phase III studies in the RED-C program on rifaximin for the prevention and delay of the first episode of hepatic encephalopathy are in the treatment phase. Top-line results are expected by early 2026.
The company’s program for Clear and Brilliant Touch, a fractionated laser device for skin rejuvenation, is also advancing. In addition to the United States, approvals have been received for Australia, New Zealand, Philippines, Thailand, Taiwan, Malaysia and Singapore in 2024. BHC is awaiting the European regulatory response to the submission.
BHC’s Guidance for 2025
BHC expects revenues to be in the range of $9.9-$10.15 billion. Excluding Bausch + Lomb, revenues are anticipated to be in the band of $4.95-$5.10 billion. Bausch + Lomb revenues are expected to be in the range of $4.950-$5.05 billion.
Bausch Health Cos Inc. Price, Consensus and EPS Surprise
Bausch's fourth-quarter results were encouraging, with sales and earnings beating estimates. The guidance for 2025 is also encouraging. The Salix business maintained its momentum on the back of Xifaxan, which witnessed strong growth in underlying demand.
Bausch Health's wholly-owned subsidiary, 1261229 B.C. LTD., entered into a financing commitment with a third-party lender to provide a senior secured credit facility of up to $700 million. If funded, BHC expects to repay its 2025 and 2026 debt obligations from the facility's proceeds, combined with the existing sources of liquidity.
If funded, this facility is expected to be secured by a portion of the Bausch + Lomb shares owned by the company. BHC is also looking to access the capital markets to more comprehensively address its maturity profile, which could include pledging a portion of the shares it holds in Bausch + Lomb.
In the past 90 days, estimates for Immunocore’s 2024 loss per share have remained unchanged at 94 cents. Loss per share estimates for 2025 have remained unchanged at $1.62 in the past seven days.
IMCR’s earnings beat estimates in two of the trailing four quarters and missed the same in the other two, the average surprise being 25.57%.
In the past 60 days, estimates for Pacira BioSciences’ earnings per share have increased from $2.79 to $3.46 for 2025.
PCRX’s earnings beat estimates in two of the trailing four quarters, met once and missed in the other, the average surprise being 7.13%.
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Bausch Health Beats on Q4 Earnings and Revenues, Xifaxan Boosts Sales
Shares of Bausch Health Companies Inc. (BHC - Free Report) gained 2.36% after the company reported better-than-expected fourth-quarter results. Shares also gained 7.8% in aftermarket trading.
Adjusted earnings per share of $1.15 beat the Zacks Consensus Estimate of $1.12. The earnings were flat year over year.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Total revenues of $2.56 billion were up 6% year over year. The top line also beat the Zacks Consensus Estimate by 1.89%.
Excluding the impact of foreign exchange of $28 million, acquisitions of $5 million and divestitures and discontinuations of $29 million, revenues increased 9% organically.
BHC’s shares have lost 24.3% year to date against the industry’s growth of 3.1%.
Image Source: Zacks Investment Research
BHC's Q4 Quarter in Detail
The company reports revenues under five segments — Salix, International, Diversified Products, Solta Medical and Bausch + Lomb.
Salix revenues totaled $634 million, up 9% year over year. Within this segment, Xifaxan revenues were up 16%, led by strong growth in underlying demand. Trulance revenues were up 6% while Relistor revenues were down 9%.
Xifaxan 550 mg tablets are indicated for the reduction in the risk of overt hepatic encephalopathy recurrence and the treatment of IBS-D in adults.
Salix revenues beat the Zacks Consensus Estimate of $598 million and our model estimate of $589.7 million.
International revenues totaled $279 million, down 4% year over year due to a decline in Latin America. The figure missed both the Zacks Consensus Estimate of $294 million and our model estimate of $291.3 million. Revenues increased 1% organically (excluding the impact of foreign exchange and divestitures and discontinuations), driven by solid growth in Canada and EMEA.
Solta Medical reported revenues of $138 million, up 34% year over year. The figure beat the Zacks Consensus Estimate of $115 million and our model estimate of $110.7 million. Revenues were up 35% organically, primarily driven by South Korea and China.
Diversified Product revenues amounted to $228 million, down 12% from the year-ago level.
Neurology posted a 1% year-over-year increase. Sales from the Dentistry business were down 17% year over year. The Generics business was down 68%. The Dermatology business was down 13% as the launch of Cabtreo was offset by discontinuations and pricing.
Cabtreo (fixed-dose, triple-combination topical treatment for acne vulgaris) was approved in Canada in the third quarter and launched in October 2024.
Diversified Product revenues missed the Zacks Consensus Estimate of $253 million and our model estimate of $271.4 million.
Revenues from Bausch + Lomb totaled $1.3 billion, up 9% year over year. The figure beat both the Zacks Consensus Estimate and our model estimate of $1.2 billion. Bausch + Lomb’s revenues increased 10% organically on a year-over-year basis, driven by growth across all business units.
BHC’s 2024 Results
Revenues amounted to $9.62 billion, which rose 10% year over year and surpassed the Zacks Consensus Estimate of $9.58 billion.
Adjusted earnings per share of $3.75 beat the Zacks Consensus Estimate of $3.73.
BHC's Pipeline Development
The phase II study on amiselimod, a new oral S1P receptor modulator that targets the treatment of mild to moderate ulcerative colitis (UC), completed enrollment. BHC also submitted a draft protocol to the FDA for a phase III study for moderate to severe UC patients. The company met all major regulatory bodies and feedback is under review.
The phase III studies in the RED-C program on rifaximin for the prevention and delay of the first episode of hepatic encephalopathy are in the treatment phase. Top-line results are expected by early 2026.
The company’s program for Clear and Brilliant Touch, a fractionated laser device for skin rejuvenation, is also advancing. In addition to the United States, approvals have been received for Australia, New Zealand, Philippines, Thailand, Taiwan, Malaysia and Singapore in 2024. BHC is awaiting the European regulatory response to the submission.
BHC’s Guidance for 2025
BHC expects revenues to be in the range of $9.9-$10.15 billion. Excluding Bausch + Lomb, revenues are anticipated to be in the band of $4.95-$5.10 billion. Bausch + Lomb revenues are expected to be in the range of $4.950-$5.05 billion.
Bausch Health Cos Inc. Price, Consensus and EPS Surprise
Bausch Health Cos Inc. price-consensus-eps-surprise-chart | Bausch Health Cos Inc. Quote
Our Take on BHC’s Performance
Bausch's fourth-quarter results were encouraging, with sales and earnings beating estimates. The guidance for 2025 is also encouraging. The Salix business maintained its momentum on the back of Xifaxan, which witnessed strong growth in underlying demand.
Bausch Health's wholly-owned subsidiary, 1261229 B.C. LTD., entered into a financing commitment with a third-party lender to provide a senior secured credit facility of up to $700 million. If funded, BHC expects to repay its 2025 and 2026 debt obligations from the facility's proceeds, combined with the existing sources of liquidity.
If funded, this facility is expected to be secured by a portion of the Bausch + Lomb shares owned by the company. BHC is also looking to access the capital markets to more comprehensively address its maturity profile, which could include pledging a portion of the shares it holds in Bausch + Lomb.
BHC's Zacks Rank and Stocks to Consider
Bausch currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the healthcare sector are Immunocore Holdings plc (IMCR - Free Report) and Pacira BioSciences, Inc. (PCRX - Free Report) , both sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 90 days, estimates for Immunocore’s 2024 loss per share have remained unchanged at 94 cents. Loss per share estimates for 2025 have remained unchanged at $1.62 in the past seven days.
IMCR’s earnings beat estimates in two of the trailing four quarters and missed the same in the other two, the average surprise being 25.57%.
In the past 60 days, estimates for Pacira BioSciences’ earnings per share have increased from $2.79 to $3.46 for 2025.
PCRX’s earnings beat estimates in two of the trailing four quarters, met once and missed in the other, the average surprise being 7.13%.