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Viatris (VTRS) to Report Q2 Earnings: What's in the Offing?
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Viatris (VTRS - Free Report) , a global healthcare company, is scheduled to report second-quarter results on Aug 7, 2023.
The company beat earnings estimates in three of the trailing four quarters and met in the remaining one, the average surprise being 6.64%. In the last reported quarter, the company beat estimates by 13.04%.
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 are likely to have somewhat impacted results in the second quarter.
Branded business and new launches are most likely to have driven sales in Developed Markets. The Zacks Consensus Estimate for revenues from branded business is pinned at $2.3 billion. Loss of exclusivity for certain products and competitive headwinds for Wixela has likely impacted business in North America.
Sales from Emerging Markets are likely to have increased on the strength of branded businesses. The Zacks Consensus Estimate for revenues from emerging markets is pegged at $696 million.
Sales from JANZ are likely to have been boosted by the generics business, which has most likely offset the challenges faced by brands in these markets. The Zacks Consensus Estimate for revenues from JANZ markets is pinned at $369 million.
Sales from Greater China markets are also likely to have increased. The Zacks Consensus Estimate for revenues from this geography is pegged at $600 million.
Brands like Dymista, Celebrex, Norvasc and Creon have likely maintained momentum for the company in the second quarter.
In November 2022, Viatris closed its transaction with Biocon Biologics Limited. Viatris had earlier announced an agreement with Biocon Biologics Limited whereby Viatris would sell its biosimilars portfolio to the latter.
Hence, sales in the second quarter might have been impacted by this move. Generics, which include diversified product forms such as extended-release oral solids, injectables, transdermals and topicals, performed ahead of management’s expectations in the previous quarter, benefiting from the launch of lenalidomide in the United States. A similar trend is likely to have prevailed in the to-be-reported quarter.
In January, Viatris completed the acquisitions of Oyster Point Pharma and Famy LifeSciences to establish a new division, Viatris Eye Care. Tyrvayas' launch continues to progress as planned by management in its first quarter. Incremental revenues from this division are likely to have boosted the top line in the second quarter.
Per management, the gross margin in the second quarter has likely been impacted due to portfolio and segment mix and expected higher costs because of inflation. SG&A and R&D expenses, too, are likely to have risen.
Share Price Performance
Viatris’ stock has lost 6.6% in the past year compared with the industry’s decline of 4.8%.
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.
Earnings ESP: Earnings ESP for Viatris is 0.00%, as both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at 71 cents. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
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 they have the right combination of elements to post an earnings beat this quarter.
ACAD beat earnings estimates in two of the last four quarters and missed in the remaining two, the average negative surprise being 2.75%.
Dynavax (DVAX - Free Report) has an Earnings ESP of +65.39% and a Zacks Rank #2. DVAX beat earnings estimates in two of the last four quarters and missed in the remaining two, the average negative surprise being 65.18%.
Alnylam Pharmaceuticals (ALNY - Free Report) has an Earnings ESP of +0.45% and a Zacks Rank #2.
ALNY topped earnings estimates in two of the last four quarters and missed in the remaining two. It has a four-quarter earnings surprise of negative 17.45%, on average.
Image: Bigstock
Viatris (VTRS) to Report Q2 Earnings: What's in the Offing?
Viatris (VTRS - Free Report) , a global healthcare company, is scheduled to report second-quarter results on Aug 7, 2023.
The company beat earnings estimates in three of the trailing four quarters and met in the remaining one, the average surprise being 6.64%. In the last reported quarter, the company beat estimates by 13.04%.
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 are likely to have somewhat impacted results in the second quarter.
Branded business and new launches are most likely to have driven sales in Developed Markets. The Zacks Consensus Estimate for revenues from branded business is pinned at $2.3 billion. Loss of exclusivity for certain products and competitive headwinds for Wixela has likely impacted business in North America.
Sales from Emerging Markets are likely to have increased on the strength of branded businesses. The Zacks Consensus Estimate for revenues from emerging markets is pegged at $696 million.
Sales from JANZ are likely to have been boosted by the generics business, which has most likely offset the challenges faced by brands in these markets. The Zacks Consensus Estimate for revenues from JANZ markets is pinned at $369 million.
Sales from Greater China markets are also likely to have increased. The Zacks Consensus Estimate for revenues from this geography is pegged at $600 million.
Brands like Dymista, Celebrex, Norvasc and Creon have likely maintained momentum for the company in the second quarter.
In November 2022, Viatris closed its transaction with Biocon Biologics Limited. Viatris had earlier announced an agreement with Biocon Biologics Limited whereby Viatris would sell its biosimilars portfolio to the latter.
Hence, sales in the second quarter might have been impacted by this move.
Generics, which include diversified product forms such as extended-release oral solids, injectables, transdermals and topicals, performed ahead of management’s expectations in the previous quarter, benefiting from the launch of lenalidomide in the United States. A similar trend is likely to have prevailed in the to-be-reported quarter.
In January, Viatris completed the acquisitions of Oyster Point Pharma and Famy LifeSciences to establish a new division, Viatris Eye Care. Tyrvayas' launch continues to progress as planned by management in its first quarter. Incremental revenues from this division are likely to have boosted the top line in the second quarter.
Per management, the gross margin in the second quarter has likely been impacted due to portfolio and segment mix and expected higher costs because of inflation. SG&A and R&D expenses, too, are likely to have risen.
Share Price Performance
Viatris’ stock has lost 6.6% in the past year compared with the industry’s decline of 4.8%.
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.
Earnings ESP: Earnings ESP for Viatris is 0.00%, as both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at 71 cents. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
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 they have the right combination of elements to post an earnings beat this quarter.
Acadia Pharmaceuticals (ACAD - Free Report) has an Earnings ESP of +38.26% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
ACAD beat earnings estimates in two of the last four quarters and missed in the remaining two, the average negative surprise being 2.75%.
Dynavax (DVAX - Free Report) has an Earnings ESP of +65.39% and a Zacks Rank #2. DVAX beat earnings estimates in two of the last four quarters and missed in the remaining two, the average negative surprise being 65.18%.
Alnylam Pharmaceuticals (ALNY - Free Report) has an Earnings ESP of +0.45% and a Zacks Rank #2.
ALNY topped earnings estimates in two of the last four quarters and missed in the remaining two. It has a four-quarter earnings surprise of negative 17.45%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.