Solid outlook from Valeant, promised changes, fire up shares

(VRX) is set to report second quarter fiscal 2016 earnings results before the opening bell Tuesday. S&P Equity Research restated a “buy” rating on shares of Valeant Pharmaceuticals International in a research report on Sunday, May 29th. Separately, on August 1, Wells Fargo’s David Maris reiterated a Sell rating on the stock and has a price target of $19.50.

The stock has recorded a 20-day Moving Average of 3.99% and the 50-Day Moving Average is 6.47%.

Papa joined the struggling company in May has said he’s open to selling off more of the firm to try and clear its mounting debt pile and would assess offers for any of its assets.

Valeant has been counting on Relistor to help it challenge rival AstraZeneca ($AZN) in the opioid-induced constipation arena, and last month the Canadian drugmaker’s product got a competitive boost.

“I have known Scott for many years – both as an investor and an analyst – and I think he is an extraordinary addition to the Valeant team”, said Joseph C. Papa, chief executive officer of Valeant.

Analysts had expected the company to post earnings of $1.48 per share on $2.46 billion in revenue, according to a Thomson Reuters consensus estimate.

Shares of Valeant closed Monday up 2.2% at $22.45, with a consensus analyst price target of $42.61 and a 52-week trading range of $18.55 to $252.51.

Medtronic plc’s (MDT) EPS growth ratio for the past five years was -2.60% while Sales growth for the past five years was 13.20%. Revenue from the company’s biggest segment, neuro and other/generics, decreased 11%.

Shares of Valeant Pharmaceuticals Intl Inc (NYSE:VRX) declined -1.26% to $21.96.

Back on 7/23/2015 the company’s estimated EPS value was $2.46 and it reported $2.58 earnings per share (EPS) for the quarter ended on 7/23/2015.

Valeant’s TSX-listed shares jumped 10 per cent in early trading Tuesday to $32.53. Atlantic Trust Group LLC raised its position in shares of Valeant Pharmaceuticals International by 79.7% in the fourth quarter. The most expectant earnings per share estimate of the stock is set at $6.92 while the conservative estimates kept at $5.53 over the current year.

“We are also announcing a new strategic direction for Valeant today, which, at its heart has a mission to improve patients’ lives, and will involve reorganizing our company and reporting segments”. Valeant Pharmaceuticals Intl Inc are listed in the Health Care sector within NYSE. The company has already sold off, or agreed to sell brodalumab European Union (EU) rights, Ruconest, and Synergetics USA OEM business, for a cumulative payment of $181 million, along with an additional consideration amounting up to $329 million.