Shares of Valeant Pharmaceuticals were down 8% after the company reported earnings this morning.
Valeant’s second quarter results were roughly in-line with estimates, but its outlook disappointed. Valeant has been locked in a battle to acquire Botox-maker Allergan, and has teamed with hedge fund manager Bill Ackman as part of its efforts.
The company reported adjusted earnings per share of $US1.91, a penny better than expectations, on sales of $US2.04 billion, which was in-line with estimates.
Valeant reported that same-store organic product sales grew 4%. Allergan, which has rejected Valeant’s overtures so far, has been critical of Valeant’s organic sales growth.
For its fiscal-year 2014, Valeant lowered its revenue and earnings outlook, saying it now sees revenue of $US8-$8.3 billion, less than the $US8.3-$8.7 billion it previously expected. The company now expects earnings per share to total $US7.90-$8.10, less than the $US8.55-$8.80 it previously expected.
Valeant also lowered its adjusted cash flow outlook.
Along with its second quarter earnings conference call, Valeant released a presentation outlining its expectations through 2016, including slides that presented its expected financial results assuming it is successful in acquiring Allergan.
Valeant said it expects Allergan shareholders to request the company hold a special meeting in August.
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