Valeant Pharmaceuticals (NYSE:VRX) Earnings Guidance Better Than Expected

As good as earnings expectations for Valeant Pharmaceuticals (NYSE:VRX), guidance from the company was even better, as the strong earnings narrative continues for the company.

UBS says, "The 2011 guidance was clearly better than we even thought they could be driven by the acceleration in cost synergies (now $250M vs $200M), the lower tax rate (now 10-15%, going to 10% by YE2011 vs 19%), the lower share count (7M shares through buyback and convert repurchase) and debt reduction (~$150M). Our estimates increase from $2.10 to $2.45 for 2011E and from $2.65 to $3.00 for 2012E...The investment thesis is unchanged. All that has changed is a lower tax rate and faster cost synergies have boosted the 2011 base. And we see upside risk to our numbers as mgt. does deals. Don't sell yet. We believe there is considerable upside for the stock."

UBS maintains a 'Buy' rating on Valeant Pharmaceuticals, which closed Friday at $35.64, up $0.09, or 0.25 percent. UBS boosted their price target on them from $34 to $40.