On Tuesday, RBC (TSX:RY) Capital Markets revised its price target for Bausch Health (TSX:BHC) Companies Inc. (NYSE:BHC) shares, moving it down to $11.00 from the previous $12.00. The firm has kept a Sector Perform rating on the stock.
The adjustment comes ahead of Bausch Health's first-quarter earnings report, which is scheduled for release before the market opens on May 2, 2024. This announcement will follow one day after Bausch + Lomb Corporation's own first-quarter results.
RBC Capital's projections for Bausch Health's first-quarter revenue stand at $2.13 billion, slightly below the FactSet consensus estimate of $2.15 billion. The firm also anticipates adjusted EBITDA to reach $682 million, which is under the FactSet consensus of $730 million.
The upcoming financial results are expected to draw attention to the possible distribution of Bausch + Lomb Corporation shares to Bausch Health shareholders and the elements that may affect this decision.
The potential distribution has been a point of interest especially after a recent Appellate Court ruling, which is believed to have put Bausch Health in a more favorable position to proceed with the distribution.
Nevertheless, the situation has been complicated by Amneal's Abbreviated New Drug Application (ANDA) submission, which could have implications for Bausch Health's strategic options moving forward. The company's strategy and response to these developments will likely be a focal point during the discussions of the quarterly results.
InvestingPro Insights
As Bausch Health Companies Inc. (NYSE:BHC) prepares to release its first-quarter earnings, investors are keenly anticipating the company's performance updates. According to the latest metrics from InvestingPro, Bausch Health has a market capitalization of $3.1 billion and a notable gross profit margin of 70.78% for the last twelve months as of Q4 2023. Despite a negative P/E ratio of -5.22, the company has shown a revenue growth of 7.79% in the same period, indicating potential underlying strength in its business operations.
InvestingPro Tips suggest that while Bausch Health was not profitable over the last twelve months, analysts are optimistic about the company's prospects, predicting profitability for this year. However, it's worth noting that two analysts have revised their earnings downwards for the upcoming period. The valuation implies a strong free cash flow yield, which could be a positive sign for investors looking for value in the current market conditions. With these insights in mind, investors should stay tuned for the May 2 earnings call to gauge the company's trajectory and the impact of any strategic decisions made.
For those looking to delve deeper, there are additional InvestingPro Tips available that could provide further guidance on Bausch Health's financial health and future prospects. Don't forget to use the coupon code PRONEWS24 for an extra 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro, where you can find a wealth of data and analysis to inform your investment decisions.
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