We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Viatris (VTRS) to Report Q3 Earnings: Is a Beat in Store?
Read MoreHide Full Article
Viatris (VTRS - Free Report) is scheduled to report third-quarter results on Nov 7, 2023.
The global healthcare company beat earnings estimates in the trailing four quarters, the average surprise being 5.89%. In the last reported quarter, the company beat estimates by 5.63%.
Viatris reports segment results based on markets and geography — Developed Markets, Emerging Markets, Japan, Australia and New Zealand (“JANZ”) and Greater China.
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 $2.4 billion.
Sales from Emerging Markets are likely to have increased on the strength of generics and branded businesses like Lipitor, Lyrica and Celebrex. The Zacks Consensus Estimate for revenues from Emerging Markets is pegged at $713 million.
Sales from JANZ were down in the previous quarter and same trend has most likely been maintained in the to-be reported quarter. The Zacks Consensus Estimate for revenues from JANZ markets is pinned at $372 million.
Sales from Greater China markets are also likely to have increased, primarily due to Viagra and other retail-driven products in China. The Zacks Consensus Estimate for revenues from this geography is pegged at $585 million.
Brands like Yupelri and Tyrvaya have likely maintained momentum for the company in the third quarter.
Generics led by lenalidomide, Wixela and Xulane performed ahead of management’s expectations in the previous quarter due to strong performance across broader Developed and Emerging Markets portfolios. Solid performance of generics boosted sales in Europe in the last quarter and the trend has most likely continued in the third quarter.
On the second quarter’s call, Viatris stated that it remains on track to deliver approximately $500 million of new product revenue in 2023.
In January, VTRS completed the acquisitions of Oyster Point Pharma and Famy LifeSciences to establish a new division, Viatris Eye Care. Tyrvayas' launch continues to progress as expected by management. Incremental revenues from this division are likely to have boosted the top line in the third quarter.
Per management, the gross margin in the second half of the year is most likely to be 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
The Viatris stock has lost 20.6% in the past year compared with the industry’s decline of 17.3%.
Image Source: Zacks Investment Research
What Our Model Predicts
Our proven model predicts 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.
Earnings ESP: Earnings ESP for VTRS is +6.12% as the Zacks Consensus Estimate stands at 74 cents and the Most Accurate Estimate is pinned at 78 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.
Other Stocks to Consider
Here are some other drug and biotech stocks you may want to consider, as our model shows that these also have the right combination of elements to post an earnings beat this season.
LGND topped earnings estimates in three of the last four quarters and missed in the remaining one, with an earnings surprise of 52.47%, on average. Ligand is scheduled to release third-quarter 2023 results on Nov 6.
Acadia Pharmaceuticals (ACAD - Free Report) has an Earnings ESP of +6.76% and a Zacks Rank #2.
Acadia beat earnings estimates in two of the trailing four quarters and missed in the remaining two. ACAD delivered an earnings surprise of 20.33%, on average. Year-to-date, shares of Acadia have gained 37.7%.
uniQure (QURE - Free Report) has an Earnings ESP of +13.90% and a Zacks Rank #2. QURE beat earnings estimates in two of the trailing four quarters and missed in the remaining two. It delivered a negative earnings surprise of 17.83%.
Image: Bigstock
Viatris (VTRS) to Report Q3 Earnings: Is a Beat in Store?
Viatris (VTRS - Free Report) is scheduled to report third-quarter results on Nov 7, 2023.
The global healthcare company beat earnings estimates in the trailing four quarters, the average surprise being 5.89%. In the last reported quarter, the company beat estimates by 5.63%.
Viatris Inc. Price, Consensus and EPS Surprise
Viatris Inc. price-consensus-eps-surprise-chart | Viatris Inc. Quote
Factors to Consider
Viatris reports segment results based on markets and geography — Developed Markets, Emerging Markets, Japan, Australia and New Zealand (“JANZ”) and Greater China.
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 $2.4 billion.
Sales from Emerging Markets are likely to have increased on the strength of generics and branded businesses like Lipitor, Lyrica and Celebrex. The Zacks Consensus Estimate for revenues from Emerging Markets is pegged at $713 million.
Sales from JANZ were down in the previous quarter and same trend has most likely been maintained in the to-be reported quarter. The Zacks Consensus Estimate for revenues from JANZ markets is pinned at $372 million.
Sales from Greater China markets are also likely to have increased, primarily due to Viagra and other retail-driven products in China. The Zacks Consensus Estimate for revenues from this geography is pegged at $585 million.
Brands like Yupelri and Tyrvaya have likely maintained momentum for the company in the third quarter.
Generics led by lenalidomide, Wixela and Xulane performed ahead of management’s expectations in the previous quarter due to strong performance across broader Developed and Emerging Markets portfolios. Solid performance of generics boosted sales in Europe in the last quarter and the trend has most likely continued in the third quarter.
On the second quarter’s call, Viatris stated that it remains on track to deliver approximately $500 million of new product revenue in 2023.
In January, VTRS completed the acquisitions of Oyster Point Pharma and Famy LifeSciences to establish a new division, Viatris Eye Care. Tyrvayas' launch continues to progress as expected by management. Incremental revenues from this division are likely to have boosted the top line in the third quarter.
Per management, the gross margin in the second half of the year is most likely to be 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
The Viatris stock has lost 20.6% in the past year compared with the industry’s decline of 17.3%.
Image Source: Zacks Investment Research
What Our Model Predicts
Our proven model predicts 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.
Earnings ESP: Earnings ESP for VTRS is +6.12% as the Zacks Consensus Estimate stands at 74 cents and the Most Accurate Estimate is pinned at 78 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.
Other Stocks to Consider
Here are some other drug and biotech stocks you may want to consider, as our model shows that these also have the right combination of elements to post an earnings beat this season.
Ligand Pharmaceuticals (LGND - Free Report) has an Earnings ESP of +2.94% and sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
LGND topped earnings estimates in three of the last four quarters and missed in the remaining one, with an earnings surprise of 52.47%, on average. Ligand is scheduled to release third-quarter 2023 results on Nov 6.
Acadia Pharmaceuticals (ACAD - Free Report) has an Earnings ESP of +6.76% and a Zacks Rank #2.
Acadia beat earnings estimates in two of the trailing four quarters and missed in the remaining two. ACAD delivered an earnings surprise of 20.33%, on average. Year-to-date, shares of Acadia have gained 37.7%.
uniQure (QURE - Free Report) has an Earnings ESP of +13.90% and a Zacks Rank #2.
QURE beat earnings estimates in two of the trailing four quarters and missed in the remaining two. It delivered a negative earnings surprise of 17.83%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.