Market News

Bausch Health Q3 Profit Rises, Shares Dip

Shares of Bausch Health (BHC) fell in early trading Tuesday after the manufacturer of health care products posted higher net income, but lower revenues in the third quarter than a year ago.

Revenue came in at $2.11 billion for the quarter ended September 30, a decrease of 1% from $2.14 billion in the prior-year quarter.

The company reported a GAAP net income of $188 million ($0.52) per diluted share) in Q3 2021, compared to $71 million ($0.20 per diluted share) in Q3 2020.

Adjusted net income (non-GAAP) was $417 million for the third quarter, down from $469 million in the same quarter a year ago.

Bausch Health chairman and CEO Joseph C. Papa said, “In the third quarter, several key products grew and gained market share. Additionally, we are delivering on multiple near-term R&D catalysts that we believe will help drive future growth.

“We have remained steadfast in our commitment and have been working diligently to accelerate the strategic alternatives process that will enable us to unlock value in our three attractive businesses as soon as possible.”

The company plans to launch the proposed IPO of its Solta Medical business in December 2021 or January 2022, and Bausch + Lomb IPO approximately 30 days later, subject to market conditions and other approvals.

Bausch Health reiterated its 2021 full-year revenue and adjusted EBITDA (non-GAAP) guidance ranges of $8.40 billion – $8.60 billion and $3.35 billion – $3.50 billion, respectively.  (See Insiders’ Hot Stocks on TipRanks)

Last month, Jefferies analyst David Steinberg maintained a Buy rating on BHC and a price target of $37 (C$45.79). This implies 29.8% upside potential.

Overall, consensus on the Street is that BHC is a Moderate Buy based on five Buys and one Sell. The average Bausch Health price target of C$43.93 implies 28.7% upside potential to current levels.

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