Viatris Inc. up 13.76% at $11.04 after earnings beat

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Monday, November 7, 2022 – Viatris Inc. (VTRS) reported rising earnings and falling revenue.

Earnings from Viatris Inc. reached EPS of $0.87 per share, 4.00% above estimates for EPS of $0.84 per share. The company’s earnings are down 12% since reporting $0.99 per share in the same period a year ago. Please keep in mind that reported earnings were on an adjusted basis, so they may not be comparable to previous reports and/or analyst estimates.

Consensus estimates for Viatris Inc.’s revenue averaged $4.1 billion, with the company falling short of those expectations with reported third-quarter revenue of $4.1 billion. The negative revenue surprise of $62 million (1%) led to negative 10% year-over-year growth, as the company reported revenue of $4.5 billion in its third quarter. the previous year. The lower profit growth relative to revenue indicates that Viatris Inc. is unable to improve its profit margin.

The stock is up 13.76% at $11.04 after the report.

Viatris Inc.’s profit margins were hit as profits fell at a faster rate than revenues.

Wall Street analysts had an average Hold rating on the stock ahead of the report.

Trading in the five days leading up to the report earned Viatris Inc. a bearish sentiment ranking of InvestorsObserver.

Before the report InvestorsObserver gave the stock an overall rating of 40. Meanwhile, the average Wall Street analyst rated the stock as Hold.

Formed by the combination of Mylan and Pfizer’s Upjohn business in 2020, Viatris is one of the world’s largest generic drug makers, with a significant portfolio of off-patent branded drugs. Its portfolio consists of more than 1,400 molecules with penetration in most developed countries and in some emerging markets. The Company’s branded drug portfolio consists of off-patent blockbuster drugs that continue to generate strong sales, including Lipitor, Norvasc, Lyrica, Viagra and EpiPen. While global competition has facilitated the commodification of generic small molecule drugs, the company has demonstrated an advantage over its peers in its ability to manufacture complex generics (eg, generics Advair and Copaxone).

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