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 Q1 Earnings: Is a Beat in Store?
Read MoreHide Full Article
Viatris (VTRS - Free Report) , a global healthcare company, is scheduled to report first-quarter results on May 9, 2024.
The company’s earnings beat estimates in three of the trailing four quarters and missed in one, delivering an average surprise of 3.78%. In the last reported quarter, the company missed on earnings by 8.96%.
Viatris reports revenues under two divisions in terms of product category —brands and generics.
Brand business makes up about two-thirds of the company’s portfolio. This category is likely to report moderate growth in the first quarter, driven by brands like Yupelri and Effexor.
Sales from the generics business (now also includes complex generics) must have experienced slight growth after declining in the last quarter.
New products like Breyna (generic of Symbicort), among others, should have enabled the company to offset the slowdown in mature products. The expected launch of Ryzumvi, an eye drop for the treatment of pharmacologically-induced mydriasis, should result in incremental sales in 2024.
The Zacks Consensus Estimate for VTRS’ first-quarter revenues is pegged at $3.7 billion, while the same for earnings is pinned at 68 cents per share.
Viatris also reports segmental results based on markets and geography — Developed Markets, Emerging Markets, Japan, Australia and New Zealand (JANZ) and Greater China.
Performance in the Developed Markets, driven by solid performance in Europe and growth in North America, is likely to have boosted the top line. Growth in Europe might have been driven by a strong brand portfolio including Brufen, EpiPen and products from the Thrombosis portfolio. The Zacks Consensus Estimate for revenues from this geography is pinned at $2.2 billion.
Branded businesses (brands like Dymista and Viagra) have likely driven the top line in Emerging Markets in the first quarter. The Zacks Consensus Estimate for revenues from this geography is pegged at $643 million.
Sales in JANZ have likely witnessed a decline due to pricing dynamics partially offset by volume growth from three brands — Amitiza, Creon and Effexor. The Zacks Consensus Estimate for revenues from the JANZ markets is pinned at $312 million.
Sales in Greater China might have been affected by government-implemented health-care policy regulations in the first quarter. The Zacks Consensus Estimate for revenues from this geography is pegged at $518 million.
In 2023, VTRS acquired Oyster Point Pharma and Famy Life Sciences 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.
Per management, the gross margin will be negatively impacted due to portfolio and segmental mix and anticipated higher costs. R&D expenses, too, are likely to have risen during the quarter due to the Idorsia collaboration.
Recent Updates
Viatris had earlier announced agreements on planned divestitures (OTC business), to simplify the organization. The transaction to divest its rights to two women’s healthcare products in certain countries (other than in the U.K., which remains subject to regulatory approval) closed in December 2023. While the divestiture of its commercialization rights in certain of the Upjohn Distributor Markets closed during 2023, the same for the women’s healthcare business closed in March 2024.
VTRS expects to complete the divestiture of its API business in India and OTC business by the end of the second quarter of 2024 and mid-2024, respectively.
Share Price Performance
Viatris’ shares have risen 8.7% year to date compared with the industry’s gain of 2.8%.
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: VTRS has an Earnings ESP of 0.74% as the Zacks Consensus Estimate is pinned at 68 cents and the Most Accurate Estimate is pegged at 69 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 that you may want to consider, as our model shows that these, too, have the right combination of elements to post an earnings beat this reporting cycle.
ADVM beat on earnings in three of the trailing four quarters and missed in one, delivering an average surprise of 3.58%. Shares of ADVM have surged 38.6% year to date.
ANI Pharmaceuticals (ANIP - Free Report) has an Earnings ESP of +9.74% and a Zacks Rank #2 at present.
ANIP beat on earnings in each of the trailing four quarters, delivering an average surprise of 109.06%. ANIP is scheduled to release first-quarter 2024 results on May 10.
Catalyst Pharmaceuticals (CPRX - Free Report) has an Earnings ESP of +1.19% and a Zacks Rank #3 at present.
CPRX beat on earnings in three of the trailing four quarters and missed in the other one, delivering an average surprise of 7.27%. CPRX is scheduled to release first-quarter 2024 results on May 8.
Image: Bigstock
Viatris (VTRS) to Report Q1 Earnings: Is a Beat in Store?
Viatris (VTRS - Free Report) , a global healthcare company, is scheduled to report first-quarter results on May 9, 2024.
The company’s earnings beat estimates in three of the trailing four quarters and missed in one, delivering an average surprise of 3.78%. In the last reported quarter, the company missed on earnings by 8.96%.
Viatris Inc. Price, Consensus and EPS Surprise
Viatris Inc. price-consensus-eps-surprise-chart | Viatris Inc. Quote
Factors to Consider
Viatris reports revenues under two divisions in terms of product category —brands and generics.
Brand business makes up about two-thirds of the company’s portfolio. This category is likely to report moderate growth in the first quarter, driven by brands like Yupelri and Effexor.
Sales from the generics business (now also includes complex generics) must have experienced slight growth after declining in the last quarter.
New products like Breyna (generic of Symbicort), among others, should have enabled the company to offset the slowdown in mature products. The expected launch of Ryzumvi, an eye drop for the treatment of pharmacologically-induced mydriasis, should result in incremental sales in 2024.
The Zacks Consensus Estimate for VTRS’ first-quarter revenues is pegged at $3.7 billion, while the same for earnings is pinned at 68 cents per share.
Viatris also reports segmental results based on markets and geography — Developed Markets, Emerging Markets, Japan, Australia and New Zealand (JANZ) and Greater China.
Performance in the Developed Markets, driven by solid performance in Europe and growth in North America, is likely to have boosted the top line. Growth in Europe might have been driven by a strong brand portfolio including Brufen, EpiPen and products from the Thrombosis portfolio. The Zacks Consensus Estimate for revenues from this geography is pinned at $2.2 billion.
Branded businesses (brands like Dymista and Viagra) have likely driven the top line in Emerging Markets in the first quarter. The Zacks Consensus Estimate for revenues from this geography is pegged at $643 million.
Sales in JANZ have likely witnessed a decline due to pricing dynamics partially offset by volume growth from three brands — Amitiza, Creon and Effexor. The Zacks Consensus Estimate for revenues from the JANZ markets is pinned at $312 million.
Sales in Greater China might have been affected by government-implemented health-care policy regulations in the first quarter. The Zacks Consensus Estimate for revenues from this geography is pegged at $518 million.
In 2023, VTRS acquired Oyster Point Pharma and Famy Life Sciences 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.
Per management, the gross margin will be negatively impacted due to portfolio and segmental mix and anticipated higher costs. R&D expenses, too, are likely to have risen during the quarter due to the Idorsia collaboration.
Recent Updates
Viatris had earlier announced agreements on planned divestitures (OTC business), to simplify the organization. The transaction to divest its rights to two women’s healthcare products in certain countries (other than in the U.K., which remains subject to regulatory approval) closed in December 2023. While the divestiture of its commercialization rights in certain of the Upjohn Distributor Markets closed during 2023, the same for the women’s healthcare business closed in March 2024.
VTRS expects to complete the divestiture of its API business in India and OTC business by the end of the second quarter of 2024 and mid-2024, respectively.
Share Price Performance
Viatris’ shares have risen 8.7% year to date compared with the industry’s gain of 2.8%.
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: VTRS has an Earnings ESP of 0.74% as the Zacks Consensus Estimate is pinned at 68 cents and the Most Accurate Estimate is pegged at 69 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 that you may want to consider, as our model shows that these, too, have the right combination of elements to post an earnings beat this reporting cycle.
Adverum Biotechnologies (ADVM - Free Report) has an Earnings ESP of +3.66% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
ADVM beat on earnings in three of the trailing four quarters and missed in one, delivering an average surprise of 3.58%. Shares of ADVM have surged 38.6% year to date.
ANI Pharmaceuticals (ANIP - Free Report) has an Earnings ESP of +9.74% and a Zacks Rank #2 at present.
ANIP beat on earnings in each of the trailing four quarters, delivering an average surprise of 109.06%. ANIP is scheduled to release first-quarter 2024 results on May 10.
Catalyst Pharmaceuticals (CPRX - Free Report) has an Earnings ESP of +1.19% and a Zacks Rank #3 at present.
CPRX beat on earnings in three of the trailing four quarters and missed in the other one, delivering an average surprise of 7.27%. CPRX is scheduled to release first-quarter 2024 results on May 8.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.