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Viatris (VTRS) to Report Q1 Earnings: What's in the Cards?
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Viatris (VTRS - Free Report) , a global healthcare company, is scheduled to report first-quarter 2022 results on May 9.
The company was formed in 2020 through the combination of Mylan and Upjohn. It beat earnings estimates in of three of the trailing four quarters and missed in one, the average surprise being 10.13%. In the last reported quarter, the company missed expectations by 2.44%.
Viatris reports segment information based on markets and geography — Developed Markets, Emerging Markets, JANZ (Japan, Australia, and New Zealand) and Greater China.
Net sales from Developed markets were up 8% in the previous quarter. This trend is likely to have continued in the to-be-reported quarter.
Sales from Emerging Markets were up 16% in the previous quarter and are likely to have increased in the to-be-reported quarter as well, driven by new product sales.
Sales from JANZ grew 38% in the previous quarter. The first quarter is likely to have seen a sequential increase.
Sales from Greater China markets are also likely to have witnessed sequential growth. Sales in the previous quarter came in at $503.8 million.
Brands performed better than management expectations in the previous quarter, driven by products such as Lipitor, Lyrica and the Thrombosis portfolio. A similar or better performance might have been witnessed by the company in the to-be-reported quarter. Complex generics and biosimilars also posted growth despite competition for Wixela Inhub and Xulane. However, this business has likely been adversely impacted the first quarter.
Generics, which includes diversified product forms such as extended-release oral solids, injectables, transdermals and topicals, performed better than expectations in the previous quarter, driven primarily by favorability in the JANZ and Emerging Markets segments. A similar trend is likely to have prevailed in the quarter.
In November, Viatris and Biocon Biologics Ltd. announced that Semglee (insulin glargine-yfgn) injection, the first interchangeable biosimilar product, was launched in the United States.
Other Updates
Concurrent with the fourth-quarter results, Viatris announced a definitive agreement with Biocon Biologics Limited whereby the former will sell its biosimilars portfolio to the latter.
Under the terms of the agreement, Viatris will combine its biosimilars portfolio with Biocon Biologics Ltd in exchange for a pre-tax consideration of up to $3.335 billion.
Viatris will receive $3 billion in consideration in the form of a $2-billion cash payment and $1 billion of convertible preferred equity at the time of close, which is currently expected in the second half of 2022, subject to the satisfaction of closing conditions, including certain regulatory approvals. VTRS will own a stake of at least 12.9% of Biocon Biologics, on a fully diluted basis. Further updates on the same will be awaited on the call.
Share Price Performance
Viatris’ stock has lost 24.1% in the year so far compared with the industry’s decline of 29.8%.
Image Source: Zacks Investment Research
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for Viatris this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is not the case here, as you will see below. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Earnings ESP: Earnings ESP for Viatris is -1.86%.
Zacks Rank: The company currently carries a Zacks Rank #4 (Sell).
Stocks to Consider
Here are a few stocks you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season.
Clovis boasts a mixed track record, having topped earnings estimates in two of the last four quarters and missing in the remaining two. Clovis pulled off a four-quarter earnings surprise of 1.44%, on average.
Vertex (VRTX - Free Report) has an Earnings ESP of +0.87% and a Zacks Rank #2.
Vertex topped earnings estimates in all of the last four quarters. Vertex delivered a four-quarter earnings surprise of 10.01%, on average.
Jazz Pharmaceuticals (JAZZ - Free Report) has an Earnings ESP of +3.04% and a Zacks Rank #3.
Jazz topped earnings estimates in all of the last four quarters. Jazz delivered a four-quarter earnings surprise of 14.5%, on average.
Image: Bigstock
Viatris (VTRS) to Report Q1 Earnings: What's in the Cards?
Viatris (VTRS - Free Report) , a global healthcare company, is scheduled to report first-quarter 2022 results on May 9.
The company was formed in 2020 through the combination of Mylan and Upjohn. It beat earnings estimates in of three of the trailing four quarters and missed in one, the average surprise being 10.13%. In the last reported quarter, the company missed expectations by 2.44%.
Viatris Inc. Price, Consensus and EPS Surprise
Viatris Inc. price-consensus-eps-surprise-chart | Viatris Inc. Quote
Factors to Consider
Viatris reports segment information based on markets and geography — Developed Markets, Emerging Markets, JANZ (Japan, Australia, and New Zealand) and Greater China.
Net sales from Developed markets were up 8% in the previous quarter. This trend is likely to have continued in the to-be-reported quarter.
Sales from Emerging Markets were up 16% in the previous quarter and are likely to have increased in the to-be-reported quarter as well, driven by new product sales.
Sales from JANZ grew 38% in the previous quarter. The first quarter is likely to have seen a sequential increase.
Sales from Greater China markets are also likely to have witnessed sequential growth. Sales in the previous quarter came in at $503.8 million.
Brands performed better than management expectations in the previous quarter, driven by products such as Lipitor, Lyrica and the Thrombosis portfolio. A similar or better performance might have been witnessed by the company in the to-be-reported quarter. Complex generics and biosimilars also posted growth despite competition for Wixela Inhub and Xulane. However, this business has likely been adversely impacted the first quarter.
Generics, which includes diversified product forms such as extended-release oral solids, injectables, transdermals and topicals, performed better than expectations in the previous quarter, driven primarily by favorability in the JANZ and Emerging Markets segments. A similar trend is likely to have prevailed in the quarter.
In November, Viatris and Biocon Biologics Ltd. announced that Semglee (insulin glargine-yfgn) injection, the first interchangeable biosimilar product, was launched in the United States.
Other Updates
Concurrent with the fourth-quarter results, Viatris announced a definitive agreement with Biocon Biologics Limited whereby the former will sell its biosimilars portfolio to the latter.
Under the terms of the agreement, Viatris will combine its biosimilars portfolio with Biocon Biologics Ltd in exchange for a pre-tax consideration of up to $3.335 billion.
Viatris will receive $3 billion in consideration in the form of a $2-billion cash payment and $1 billion of convertible preferred equity at the time of close, which is currently expected in the second half of 2022, subject to the satisfaction of closing conditions, including certain regulatory approvals. VTRS will own a stake of at least 12.9% of Biocon Biologics, on a fully diluted basis. Further updates on the same will be awaited on the call.
Share Price Performance
Viatris’ stock has lost 24.1% in the year so far compared with the industry’s decline of 29.8%.
Image Source: Zacks Investment Research
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for Viatris this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is not the case here, as you will see below. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Earnings ESP: Earnings ESP for Viatris is -1.86%.
Zacks Rank: The company currently carries a Zacks Rank #4 (Sell).
Stocks to Consider
Here are a few stocks you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season.
Clovis Oncology has an Earnings ESP of +2.33% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Clovis boasts a mixed track record, having topped earnings estimates in two of the last four quarters and missing in the remaining two. Clovis pulled off a four-quarter earnings surprise of 1.44%, on average.
Vertex (VRTX - Free Report) has an Earnings ESP of +0.87% and a Zacks Rank #2.
Vertex topped earnings estimates in all of the last four quarters. Vertex delivered a four-quarter earnings surprise of 10.01%, on average.
Jazz Pharmaceuticals (JAZZ - Free Report) has an Earnings ESP of +3.04% and a Zacks Rank #3.
Jazz topped earnings estimates in all of the last four quarters. Jazz delivered a four-quarter earnings surprise of 14.5%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar