Bausch Health Companies reported an unexpected first-quarter loss on Tuesday and BHC stock crashed.
During the March quarter, the pharma company lost 43 cents per share on $1.92 billion in sales. But the Street called for an adjusted gain of $1.03 a share. Further, sales lagged more bullish expectations for $2.04 billion, according to FactSet.
But Chief Executive Thomas Appio emphasized Bausch's organic sales performance. Organically, sales were flat despite "incremental macro pressure and a challenging supply chain environment," he said in a written statement. He also noted Bausch's plan to separate its eye-care business, Bausch & Lomb. The latter company's initial public offering also launched Tuesday.
"We will operate as two companies, which enables Bausch Health to increase its focus on accelerating growth with strategic commercial investments and expanding our pipeline with innovative products that improve the quality of life for patients around the world," he said.
Yet on today's stock market, BHC stock plunged 27.1% to 9.40.
BHC Stock: International Sales Plummet
On a strict as-reported basis, revenue fell 5%. Bausch noted a $41 million hit due to exchange rates and another $72 million from divestitures. The latter point includes Amoun Pharmaceutical, an Egyptian drugmaker Bausch recently divested.
On a segment basis, the biggest decline came from Bausch's international business. Sales tumbled 20% to $244 million. Bausch blamed a decrease in the volume, partially offset by an increase in net pricing. Trailing, the company's diversified products business lost 16%, falling to $249 million.
Sales were stronger in Bausch's biggest segment, Salix. The gastrointestinal medicines business brought in $464 million, down just 2%. Prior to the Bausch & Lomb separation, the segment generated $889 million, growing 1%. Meanwhile, sales in Bausch's Solta skin-care business were flat at $72 million.
For the year, Bausch expects $8.25 billion to $8.4 billion in sales, reaffirming its organic sales growth forecast for 3%-5%. BHC stock analysts called for a stronger $8.58 billion, however.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
