Valeant Pharmaceuticals International Inc. announced on Monday that it expects to report its earnings for the first quarter earlier than its deadline to prevent the default in its debt agreements.
The Canadian-based drug company said its latest 10-Q will be filed by June 10, way ahead of its July 31 deadline as required in its amended credit agreement. It also indicated that it expects to file quarterly filings for the present quarter that ends in June 30, and promises regular quarterly filings "on a timely basis."
Late last month, Valeant filed its long-delayed annual report, neutralizing the risk of a debt default and placing the company in a position to start afresh after months of worries regarding its business and accounting practices.
Currently, company stock is up by 4.72 percent to $31.27 in Monday's pre-market trading, as it is expected to report its earnings in the first quarter of 2016, ahead of an extended deadline.
The drug company also reiterated its 2016 first quarter earnings and revenue forecast. Information on its first quarter conference call will be released "in due course," said a company statement.
Valeant Pharmaceuticals also expects that its 2016 second quarter financial results will be filed "on a timely basis under the applicable rules."
Meanwhile, the Street Ratings team has given Valeant's stock a rating of "sell" with a ratings score of D.
The drug company's weaknesses include its generally high debt management risk, weak operating cash flow, deteriorating net income, dismal return on equity, and an overall unsatisfactory performance in the stock itself.
However, Valeant said its default concerns were "cured in all respects" by its 10-K annual filing. Its original deadline was in February but was delayed as the company sorted out its finances in the aftermath of an internal probe into its terminated relationship with Philidor Rx Services LLC.
