Valeant shares retreat the most in 16 weeks on Tuesday, company’s quarterly net loss increases, EPS top expectations

On February 28th Valeant Pharmaceuticals International Inc (VRX) reported an increase in its net loss during the quarter ended on December 30th. At the same time, the companys earnings per share, excluding special items, topped market consensus, supported by a strong performance in its Bausch and Lomb eyecare business as well as by lower general and administrative costs.

Valeants US-listed shares registered their largest daily slump since November 8th 2016 on Tuesday. The stock went down 13.94% ($2.33) to $14.38, after touching an intraday low at $14.16, or a level not seen since February 8th ($14.14). In the week ended on February 26th the shares of the pharmaceutical and medical device company added 0.87% to their market value compared to a week ago, which marked a fourth consecutive period of gains. The stock rose 4.35% in February, following a 5.10% retreat in January. The latter has been a fifth consecutive monthly decline, but yet, the smallest one since November 2015. For the entire past year, Valeants NYSE-listed shares plummeted 85.72%.

Net loss attributable to shareholders was reported to have widened to $515 million ($1.47 per share) during the quarter ended on December 30th from $385 million ($1.12 per share) during the same period a year ago.

Valeants earnings per share, excluding special items, were reported at $1.26 during the fourth quarter. In comparison, the median estimate by analysts had pointed to earnings of $1.19 per share, according to Thomson Reuters I/B/E/S.

The Quebec-based company reported a 10.5% drop in its selling, general and administrative costs to $665 million during the period.

At the same time, total revenue was reported to have shrunk 12.9% to $2.40 billion during the quarter ended on December 30th. Analysts on average had anticipated a larger revenue drop – to $2.33 billion.

Valeant now projects that its full-year 2017 revenue to be within the range between $8.90 billion and $9.10 billion. In comparison, the median forecast by analysts points to a revenue of $8.96 billion this year.

Daily and Weekly Pivot Levels

With the help of the Camarilla calculation method, todays levels of importance for the Valeant stock (NYSE) are presented as follows:

R1 – $14.59
R2 – $14.81
R3 (Range Resistance – Sell) – $15.02
R4 (Long Breakout) – $15.66
R5 (Breakout Target 1) – $16.40
R6 (Breakout Target 2) – $16.74

S1 – $14.17
S2 – $13.95
S3 (Range Support – Buy) – $13.74
S4 (Short Breakout) – $13.10
S5 (Breakout Target 1) – $12.36
S6 (Breakout Target 2) – $12.02

By using the traditional method of calculation, the weekly levels of importance for Valeant Pharmaceuticals International Inc (VRX) are presented as follows:

Central Pivot Point – $16.37
R1 – $16.63
R2 – $17.09
R3 – $17.35
R4 – $17.62

S1 – $15.91
S2 – $15.65
S3 – $15.19
S4 – $14.74