Bausch Health Reports Strong Earnings, What’s Next for the Stock?
Bausch Health (BHC) recently revealed quarterly earnings of $1.12 per share, surpassing the Zacks Consensus Estimate of $1.03 per share, and showing an increase from $1.03 per share a year earlier. This result reflects adjustments for non-recurring items.
This quarterly report marks an earnings surprise of 8.74%. Just one quarter ago, Bausch was expected to earn $0.89 per share but met that expectation exactly, resulting in no surprise.
Over the past year, the company outperformed consensus EPS estimates in two out of four quarters.
Bausch, a player in the Zacks Medical – Generic Drugs industry, reported revenues of $2.51 billion for the quarter ending September 2024, which exceeds the Zacks Consensus Estimate by 3.33%. This is an increase compared to the $2.24 billion in revenues reported the previous year. Bausch has beaten consensus revenue estimates three times within the last four quarters.
The immediate stock price movement and future earnings expectations will largely hinge on insights provided by management during the earnings call.
Since the start of the year, Bausch shares have appreciated by approximately 1.8%, in contrast to the S&P 500’s impressive gain of 22.3%.
Future Prospects for Bausch
Looking ahead, Bausch’s underperformance versus the broader market this year raises a key question for investors: what lies ahead for the stock?
Finding a straightforward answer is challenging. However, insight into the company’s earnings outlook can provide guidance. This outlook comprises current consensus earnings expectations for upcoming quarters and any recent changes to those expectations.
Research indicates a strong correlation between short-term stock movements and trends in earnings estimate revisions. Investors can monitor these revisions themselves, or they may rely on the Zacks Rank, a tool with a robust track record in tracking the impact of earnings estimate revisions.
Prior to this earnings release, the trend in estimate revisions for Bausch has been mixed. Following the recent earnings report, the estimate revisions status could change, but currently, Bausch maintains a Zacks Rank #3 (Hold), indicating expected performance in line with the market. A complete list of today’s Zacks #1 Rank (Strong Buy) stocks is available on their site.
In the coming days, it will be crucial to observe how estimates for future quarters and the current fiscal year shift. The current consensus EPS estimate stands at $1.12, with projected revenues of $2.52 billion for the next quarter and $3.60 on revenues of $9.51 billion for the current fiscal year.
It’s important for investors to consider that the industry’s overall outlook significantly influences stock performance. Presently, the Medical – Generic Drugs sector ranks in the top 31% of over 250 Zacks industries. History shows that companies in the top 50% of Zacks-ranked industries tend to outperform those in the bottom 50% by a ratio of more than 2 to 1.
Another contender in the same industry, Amphastar Pharmaceuticals (AMPH), has not yet reported its results for the quarter ending September 2024, with an anticipated release date set for November 6.
Amphastar is projected to report quarterly earnings of $1.03 per share, reflecting a year-over-year decline of 10.4%. Over the last 30 days, the consensus EPS estimate has been revised down by 1.3%.
Revenues for Amphastar are expected to reach $195.81 million, marking an 8.5% increase compared to the previous year.
Is Bausch Health a Good Investment?
Before making an investment decision regarding Bausch Health Cos Inc. (BHC), consider checking Zacks Investment Research for insights on the best stocks to buy over the next 30 days.
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Bausch Health Cos Inc. (BHC): Free Stock Analysis Report
Amphastar Pharmaceuticals, Inc. (AMPH): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
