LAVAL, Que. – Bausch Health Companies Inc. stock plummeted by a quarter Tuesday morning after the company missed earnings expectations and lowered its outlook for the year.

The plunge of $4.04, or 24.08 per cent, to $12.74 in late-morning trading on the Toronto Stock Exchange came on the final day of its initial public offering for eye-products maker Bausch + Lomb, which debuted Friday on the TSX and New York Stock Exchange and will operate as a separate company after trading closes Tuesday.

Bausch Health expects to wrap the spin-off with US$630 million in gross proceeds, which it plans to put toward its US$23.17 billion in long-term debt.

The stock dive also came after the Quebec-based firm, which keeps its books in U.S. dollars, notched down its guidance to between US$8.25 billion and US$8.40 billion in revenue for 2022 from US$8.40 billion and US$8.60 billion previously. Adjusted earnings before interest, taxes, depreciation and amortization are forecast at US$3.22 billion to US$3.38 billion, down from US$3.35 billion to US$3.50 billion.

Bausch Health reported a loss of US$69 million in its first quarter compared with a loss of US$610 million a year earlier when it took a goodwill impairment charge in its Ortho Dermatologics business.

Revenue for the quarter ended March 31 totalled US$1.92 billion, down from US$2.03 billion in the same period last year.

“Our organic growth in the first quarter of 2022 was stable compared to the same quarter last year, despite incremental macro pressures and a challenging supply chain environment,” Thomas Appio, incoming chief executive officer, said in a release.

Analysts had expected a US$1 million loss on revenues of US$2.04 billion, according to financial data firm Refinitiv.

Adjusted net income for the quarter was US$263 million, down from US$370 million a year earlier and 28 per cent below analyst expectations of US$365.2 million.

Current Bausch Health CEO Joseph Papa will remain as chairman until the full separation of Bausch + Lomb this week, when he will be succeeded by Robert Power.

This report by The Canadian Press was first published May 10, 2022.

Companies in this story: (TSX:BHC, TSX:BLCO)