BHC stock falls after guidance cut as forex impact hurts topline (NYSE:BHC)

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After recording a revenue decline in Q3 2022 triggered by forex headwinds, the Canadian healthcare company Bausch Health (NYSE:BHC) dropped ~4% pre-market Thursday as its management lowered the full-year guidance.

“We are encouraged with the top line improvement in the third quarter, with four out of five segments delivering growth on an organic basis,” Chief Executive Thomas Appio remarked ahead of the earnings call at 8:00 a.m. ET.

Total revenue for the period dropped ~3% YoY to $2.0B on a reported basis as unfavorable changes in foreign exchange caused an $82M impact.

All of Bausch Health’s (BHC) business segments recorded organic growth except the Diversified Products segment, where revenue slipped ~18% YoY to $238M.

Salix segment and the International segment added $544M and $250M in revenue with ~3% YoY growth and ~8% YoY decline on a reported basis, respectively, while aesthetic device unit Solta Medical brought $72M with ~3% YoY drop.

Net income attributable to Bausch Health (BHC) more than doubled to $399M, thanks mainly to a $570M gain from debt extinguishment. However, the company’s adjusted net income dropped ~34% YoY to $277M due to foreign exchange headwinds and other matters.

At the end of the quarter, Bausch Health (BHC) reported $486M of cash and equivalents, indicating a ~17% decline from 2021 year-end, while its total long-term debt and other items dropped ~6% to $21.2B driven by ~57% decline in the value of Senior Unsecured Notes.

The company has lowered its full-year outlook for revenue and adj. EBITDA to $8.0B – $8.17B and $2.99B – $3.09B from $8.05B – $8.22B and $3.02B – $3.12B in the prior guidance, respectively. Meanwhile, the consensus indicates Bausch Health (BHC) to report $8.11B in revenue this year.



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