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Viatris (VTRS) to Report Q3 Earnings: What's in the Cards?
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Viatris (VTRS - Free Report) , a global healthcare company, is scheduled to report third-quarter 2022 results on Nov 7.
The company was formed in 2020 through the combination of Mylan and Upjohn. It beat earnings estimates in three of the trailing four quarters and missed in one, the average surprise being 9.03%. In the last reported quarter, the company beat expectations by 8.64%.
Viatris reports segment information based on markets and geography — Developed Markets, Emerging Markets, Japan, Australia, and New Zealand (JANZ)and Greater China.
Unfavorable movements in foreign exchange rates impacted results in the second quarter and the scenario is likely to have prevailed in the third quarter.
Net sales from Developed markets were down 6% in the previous quarter. This trend is likely to have continued in the third quarter.
Sales from Emerging Markets were down 25% in the previous quarter and sales are likely to have decreased in the to-be-reported quarter as well.
Sales from JANZ were down 15% in the previous quarter and the third quarter is likely to have seen a similar trend.
Sales from Greater China markets were roughly flat. Sales in the third quarter are likely to have declined due to lockdowns.
On a segment basis, brands performed better than management expectations in the previous quarter, driven by products such as EpiPen, Norvasc, and Lipitor. A similar or better performance might have been witnessed by the company in the to-be-reported quarter.
Complex generics and biosimilars performed largely in line with expectations and grew 11% year over year on an operational basis, mainly driven by the interchangeable Semglee launch in the United States.
Generics, which includes diversified product forms such as extended-release oral solids, injectables, transdermals and topicals, performed better than expectations, driven by higher North American demand. A similar trend is likely to have prevailed in the to-be-reported quarter.
Management stated that Viatris is on track to achieve approximately $600 million in new product revenues in 2022.
Per management, SG&A and R&D were projected to increase in the second half of the year and the same is likely to have impacted margins and the bottom line in the third quarter.
An update on the U.S. launch of generic lenalidomide is also expected with the third-quarter results.
Other Updates
Viatris had earlier announced an agreement with Biocon Biologics Limited whereby the former would sell its biosimilars portfolio to the latter.
Per 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 closing, 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.
The transaction is on track to close in the second half of 2022.
Share Price Performance
Viatris’ stock has lost 25.1% in the year so far compared with the industry’s decline of 28.7%.
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 0.00% as both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at 82 cents.
Zacks Rank: The company currently carries a Zacks Rank #3.
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.
Image: Bigstock
Viatris (VTRS) to Report Q3 Earnings: What's in the Cards?
Viatris (VTRS - Free Report) , a global healthcare company, is scheduled to report third-quarter 2022 results on Nov 7.
The company was formed in 2020 through the combination of Mylan and Upjohn. It beat earnings estimates in three of the trailing four quarters and missed in one, the average surprise being 9.03%. In the last reported quarter, the company beat expectations by 8.64%.
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, Japan, Australia, and New Zealand (JANZ)and Greater China.
Unfavorable movements in foreign exchange rates impacted results in the second quarter and the scenario is likely to have prevailed in the third quarter.
Net sales from Developed markets were down 6% in the previous quarter. This trend is likely to have continued in the third quarter.
Sales from Emerging Markets were down 25% in the previous quarter and sales are likely to have decreased in the to-be-reported quarter as well.
Sales from JANZ were down 15% in the previous quarter and the third quarter is likely to have seen a similar trend.
Sales from Greater China markets were roughly flat. Sales in the third quarter are likely to have declined due to lockdowns.
On a segment basis, brands performed better than management expectations in the previous quarter, driven by products such as EpiPen, Norvasc, and Lipitor. A similar or better performance might have been witnessed by the company in the to-be-reported quarter.
Complex generics and biosimilars performed largely in line with expectations and grew 11% year over year on an operational basis, mainly driven by the interchangeable Semglee launch in the United States.
Generics, which includes diversified product forms such as extended-release oral solids, injectables, transdermals and topicals, performed better than expectations, driven by higher North American demand. A similar trend is likely to have prevailed in the to-be-reported quarter.
Management stated that Viatris is on track to achieve approximately $600 million in new product revenues in 2022.
Per management, SG&A and R&D were projected to increase in the second half of the year and the same is likely to have impacted margins and the bottom line in the third quarter.
An update on the U.S. launch of generic lenalidomide is also expected with the third-quarter results.
Other Updates
Viatris had earlier announced an agreement with Biocon Biologics Limited whereby the former would sell its biosimilars portfolio to the latter.
Per 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 closing, 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.
The transaction is on track to close in the second half of 2022.
Share Price Performance
Viatris’ stock has lost 25.1% in the year so far compared with the industry’s decline of 28.7%.
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 0.00% as both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at 82 cents.
Zacks Rank: The company currently carries a Zacks Rank #3.
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.
Editas Medicine (EDIT - Free Report) has an Earnings ESP of +1.67% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings of EDIT beat estimates in each of the trailing four quarters. It delivered an earnings surprise of 17.82%, on average.
Jazz Pharmaceuticals (JAZZ - Free Report) has an Earnings ESP of +2.12% and a Zacks Rank #2.
JAZZ beat earnings estimates in three of the last four quarters, with the average earnings surprise being 10.94%.
Acadia Pharmaceuticals (ACAD - Free Report) has an Earnings ESP of +6.47% and a Zacks Rank #3.
Acadia topped earnings estimates in two of the last four quarters and has a four-quarter earnings surprise of 6.83%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.