Bausch (BHC) Down 5.5% Since Last Earnings Report: Can It Rebound?

A month has gone by since the last earnings report for Bausch Health (BHC). Shares have lost about 5.5% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Bausch due for a breakout? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent drivers for Bausch Health Cos Inc. before we dive into how investors and analysts have reacted as of late.

BHC Beats on Q3 Earnings, Salix and Solta Drive Sales

Adjusted earnings per share of $1.16 comfortably beat the Zacks Consensus Estimate of $1.07 and were up from $1.12 recorded in the year-ago quarter.

Total revenues of $2.68 billion were up 7% year over year. The top line also beat the Zacks Consensus Estimate of $2.6 billion.

Excluding the impact of foreign exchange of $29 million, acquisitions of $3 million, and divestitures and discontinuations (which negatively impacted the prior year by $3 million), revenues increased 5% organically year over year.

BHC's Q3 in Detail

The company reports revenues under two segments — Bausch Health and Bausch + Lomb.

Within the Bausch Health segment, revenues are recorded under four divisions —  Salix, International, Solta Medical and Diversified Products.

Salix revenues totaled $716 million, up 12% year over year. Within this segment, Xifaxan revenues were up 16%, led by strong growth in underlying demand. However, Relistor (-8%) and Trulance (-6%) were impacted by unfavorable net pricing. Relistor revenues were also affected by lower volumes.

Xifaxan 550 mg tablets are indicated for the reduction in the risk of overt hepatic encephalopathy recurrence and the treatment of IBS-D in adults.

Salix revenues comfortably beat both the Zacks Consensus Estimate and our model estimate of $650 million.International revenues totaled $286 million, down 2% year over year, due to a 17% decline in Latin American and an 8% fall in Canadian markets.  Continued softness in Mexican markets impacted sales from Latin America.

Nonetheless, the reported figure beat both the Zacks Consensus Estimate of $285 million and our model estimate of $278 million.  Excluding the impact of foreign exchange of $9 million and divestitures and discontinuations of $1 million, revenues decreased 4%.

Solta Medical reported revenues of $140 million, up 25% year over year, driven by growth in each geography. The figure beat the Zacks Consensus Estimate of $129 million and our model estimate of $137 million. Revenues were up 24% organically, primarily driven by strong growth in Asia Pacific markets.

Diversified Product revenues amounted to $258 million, down 4% from the year-ago level. Within this segment, neurology sales decreased 14% year over year due to fluctuations in demand for Cardizem. Sales from the Dentistry business were flat year over year. The Generics business was also flat. The Dermatology business gained 21%, driven by strong Cabtreo and Jublia growth.

Diversified Product revenues beat the Zacks Consensus Estimate of $231 million and our model estimate of $217 million.

Revenues from Bausch + Lomb totaled $1.28 billion, up 7% year over year, driven by single-digit growth across each business — vision care, surgical and pharmaceuticals. However, the figure missed both the Zacks Consensus Estimate and our model estimate of $1.3 billion.

Excluding the impact of foreign exchange of $19 million, acquisitions of $3 million and divestitures and discontinuations of $4 million, Bausch + Lomb segment revenues were up 6% organically on a year-over-year basis.

Pipeline Updates

The phase III studies in the RED-C program on rifaximin for the prevention and delay of the first episode of hepatic encephalopathy are in the treatment phase. The company is on track to report top-line phase III results by early 2026.

BHC is conducting an internal review on pipeline candidate amiselimod, a new oral S1P receptor modulator that targets the treatment of mild to moderate ulcerative colitis.

The FDA granted Larsucosterol (Epigenetic modulator) Breakthrough Therapy Designation for the treatment of alcohol-associated hepatitis (AH). The registrational phase III program is in development to evaluate the safety and efficacy in patients with severe AH.

The company’s program for Clear and Brilliant Touch, a fractionated laser device for skin rejuvenation, is also advancing. In addition to the United States, approvals were received for Australia, New Zealand, Philippines, Thailand, Taiwan, Malaysia and Singapore in 2024. The treatment also received approval from the Chinese National Medical Products in August 2025.

BHC Raises Lower End of 2025 Guidance

BHC now expects revenues to be in the range of $10.050-$10.250 billion (previous guidance: $10-$10.250 billion). Excluding Bausch + Lomb, revenues are now projected to be in the range of $5.000-$5.100 billion (previous guidance: $4.95-$5.10 billion). Bausch + Lomb revenues are still expected to be in the range of $5.05-$5.150 billion.


 

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a upward trend in estimates review.

The consensus estimate has shifted 8.55% due to these changes.

VGM Scores

Currently, Bausch has a average Growth Score of C, however its Momentum Score is doing a lot better with an A. Following the exact same course, the stock has a grade of A on the value side, putting it in the top 20% for value investors.

Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, Bausch has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Bausch is part of the Zacks Medical - Generic Drugs industry. Over the past month, Doctor Reddy's (RDY), a stock from the same industry, has gained 4%. The company reported its results for the quarter ended September 2025 more than a month ago.

Doctor Reddy's reported revenues of $992 million in the last reported quarter, representing a year-over-year change of +3.7%. EPS of $0.19 for the same period compares with $0.04 a year ago.

For the current quarter, Doctor Reddy's is expected to post earnings of $0.16 per share, indicating a change of -20% from the year-ago quarter. The Zacks Consensus Estimate has changed -11.1% over the last 30 days.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Doctor Reddy's. Also, the stock has a VGM Score of B.

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This article originally published on Zacks Investment Research (zacks.com).

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