Share price movements
On May 6, Bausch Health Companies (BHC) reported its first-quarter results. The company reported revenues of $2.02 billion in the first quarter—a rise of 1.05% YoY (year-over-year) on a reported basis, 4% on a constant currency basis, and 5% on an organic basis. According to the first-quarter earnings conference call, the first-quarter performance is the best YoY organic revenue growth reported by the company on a sequential basis since the third quarter of 2015. The company suffered a negative revenue impact of $59 million associated with FX movements, $80 million related to loss of exclusivity of certain products, and $18 million related to divested or discontinued products in the first quarter.
In the first quarter, Bausch Health Companies reported non-GAAP EPS of $1.02—a rise of 15.91% YoY on a reported basis.
Bausch Health Companies missed the consensus revenue estimate by $12.50 million. However, the company beat the consensus EPS estimate by $0.18 in the first quarter.
After the results, Bausch Health Companies closed at $25.48 on May 7—8.70% higher than the previous close. On May 7, the company closed at $25.49—0.04% higher than the previous close, 48.20% higher than the 52-week low of $17.20, and 10.40% lower than the 52-week high of $28.45. Bausch Health Companies’ market capitalization is $8.90 billion. The company’s forward PE, price-to-sales, price-to-book, and price-to-cash ratios were 6.03x, 1.06x, 3.28x, and 12.34x, respectively.
Bausch Health Companies’ 14-day RSI (relative strength index) is 61.89. The company’s outstanding shares are 349.05 million, while the short float ratio is 2.58%.
Analysts’ recommendations and target price
Analysts expect an upside potential of 22.17% for Bausch Health Companies based on the company’s closing price on May 7. Analysts have changed the company’s 12-month consensus target price from $30.29 in February and March to $30.00 in April and $31.14 in May.
Among the 17 analysts covering Bausch Health Companies, two recommended a “strong buy,” seven recommended a “buy,” five recommended a “hold,” two recommended a “sell,” and one recommended a “strong sell.” The consensus recommendation for the company is a “hold.”