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Valeant Earnings Impress, VRX Stock Rallies

By U.S. News & World Report

Controversial drug maker Valeant Pharmaceuticals International Inc. (NYSE: VRX) once again lowered its revenue guidance on Tuesday, but VRX stock rose more than 7 percent in morning trading as investors are hopeful that the company is taking positive steps to get business back on track.

[See: 7 of the Best Health Care Stocks to Buy for 2017.]

Excluding items, VRX reported second-quarter earnings of $1.05 per share, topping consensus analyst expectations of 94 cents. Revenue for the quarter came in at $2.23 billion, down 7.8 percent from a year ago but slightly ahead of the $2.22 billion Wall Street was expecting.

Valeant cut its full-year revenue guidance from a previous range between $8.9 billion and $9.1 billion to a new range between $8.7 billion and $8.9 billion. However, the company reiterated its previous full-year adjusted earnings before interest, tax, depreciation and amortization forecast of between $3.6 billion and $3.75 billion.

Perhaps most importantly for long-term investors, Valeant continued to execute its debt reduction initiative in the second quarter. VRX has already reduced its total debt by $4.8 billion in the past five quarters. CEO Joe Papa says the company is well on its way to pay down another $5 billion in debt by February 2018 via a combination of asset sales and free cash flow from Valeant’s core businesses.

“The investments we are making in our core business are delivering results,” Papa says. “And we are continuing to reduce debt and resolve legacy issues.”

Valeant’s debt ballooned to more than $30 billion during a period of acquisition-fueled growth under the company’s previous leadership. Valeant has also been criticized for its drug pricing policies and for alleged aggressive billing practices related to its relationship with specialty pharmacy Philidor Rx Services.

After peaking at nearly $90 billion in 2015, Valeant’s market capitalization has plummeted 83 percent to less than $6 billion. VRX stock plunged from more than $250 per share in 2015 to a low of $8.31 per share in the last year.

While the stock has stabilized in recent months and investor sentiment seems to have shifted in a more positive direction, J.P. Morgan analyst Chris Schott said last month that Valeant’s stock is still a risky long-term bet.

“The recovery of Valeant’s core business remains the most important component of the company’s ongoing turnaround plan and we see only limited indications of an inflection in fundamentals in our view,” Schott wrote.

[See: 9 Ways to Spot Value Trap Stocks.]

Valeant reported sales of its leading drug, Xifaxan, were up 17 percent in the second quarter.

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Valeant Earnings Impress, VRX Stock Rallies originally appeared on usnews.com

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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