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Mylan, Inc. (MYL - Analyst Report) will be reporting third quarter 2013 results on Oct 31, before the opening bell. Last quarter, the company posted a positive surprise of 1.49%. We expect the company to deliver a positive earnings surprise in the third quarter of 2013 as well.

Factors at Play for Q3

Mylan has delivered positive earnings surprises in three of the last four quarters with an average beat of 3.61%. The strong performance of the generics segment has been driving growth at Mylan. The segment is expected to perform well in the third quarter as well. Moreover, sales of EpiPen auto-injector for severe allergic reactions are expected to be strong in the third quarter of 2013. Impressive sales of the product, which is a part of the Mylan Specialty division, could also lead to an earnings beat in the third quarter of 2013.

Earnings Whispers?

Our proven model shows that Mylan is likely to beat earnings because it has the right combination of two key ingredients.

Positive Zacks ESP: The Earnings ESP (Expected Surprise Prediction), which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, is +1.28%. This is a meaningful and leading indicator of a likely positive earnings surprise for the shares.

Zacks Rank #3 (Hold): Note that stocks with a Zacks Rank #1 (Strong Buy), 2 (Buy) and 3 have a significantly higher chance of beating earnings estimates. We caution against stocks with Zacks Ranks #4 and 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revision momentum.

The combination of Mylan’s Zacks Rank #3 and an ESP of +1.28% make us confident of an earnings beat on Oct 31.

Other Stocks to Consider

Mylan is not the only company looking up this earnings season. We also see likely earnings beat coming from these companies:

Regeneron Pharmaceuticals, Inc. (REGN - Analyst Report) has Earnings ESP of +10.10% and carries a Zacks Rank #3.

Endo Health Solutions Inc. (ENDP - Analyst Report) has Earnings ESP of +0.89% and carries a Zacks Rank #3.

Perrigo Company (PRGO - Analyst Report) has Earnings ESP of +2.88% and carries a Zacks Rank #3.

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