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Mylan (MYL) to Report Q3 Earnings: Is a Beat in the Cards?
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Mylan N.V. is expected to beat on earnings when it reports third-quarter 2020 results on Nov 6.
The company’s performance has been excellent, beating earnings estimates in the trailing four quarters by 7.57%, on average. In the last reported quarter, the company’s earnings beat estimates by 16.84%.
Our proven model predicts an earnings beat for Mylan this season. 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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: Mylan has an Earnings ESP of +1.69%, as the Zacks Consensus Estimate stands at $1.15 and the Most Accurate Estimate at $1.17.
Zacks Rank: The company has a Zacks Rank #3.
Factors to Consider
The company reports results in three segments on a geographic basis — North America, Europe and the Rest of the World.
North America revenues reported 2% year-over-year growth in the last reported quarter primarily due to higher volumes on sales of existing products along with new product sales. Volumes were primarily driven by the growth of Yupelri and Wixela. This trend most likely continued in the third quarter as well. However, lower EpiPen volumes are likely to be a drag on sales in the to-be-reported quarter.
In August, Mylan and Biocon announced the U.S. launch of Semglee (insulin glargine injection) in vial and pre-filled pen presentations. Incremental sales from this product are likely to have boosted the top line. The Zacks Consensus Estimate for this segment’s sales is $1.1 billion.
Net sales in Europe were down 6% in the previous quarter due to lower volumes from net sales of existing products due to COVID-19. Sales have most likely declined in the quarter under review as well. The Zacks Consensus Estimate for this segment’s sales is $1 billion.
The Rest of the World segment’s net sales were down 10% in the previous quarter due to the unfavorable impact of foreign currency translation and lower volumes from net sales of existing products, driven by the negative impact of COVID-19 in many emerging markets, including China. Similar trends have most likely prevailed in the third quarter. The Zacks Consensus Estimate for this segment’s sales is $793 million.
Concurrent with the second-quarter results, Mylan stated that overall recovery from COVID-19 impacts will occur slower than anticipated and may continue throughout the rest of the year. Investors will be keen to know the magnitude of the impact of the same in the third quarter and the rest of the year.
Key Anticipated Updates
Mylan and Pfizer Inc. (PFE - Free Report) recently announced that the U.S. Federal Trade Commission (FTC) accepted a proposed consent order, which concludes the FTC’s review of the proposed combination of Mylan and Pfizer’s Upjohn business. The parties have now obtained all required antitrust clearances for the proposed transaction. The combination is expected to close on Nov 16, 2020, when the combined company will be renamed Viatris Inc. Upon completion of the merger, Pfizer’s stockholders, as of the record date, will own 57% of the outstanding shares of Viatris common stock and Mylan’s shareholders will own 43% of the outstanding shares of the same. The companies have also received the final approval from the European Commission (EC) for the proposed combination of Mylan and Pfizer's Upjohn business.
In September, Mylan announced an agreement to acquire Aspen Pharmacare Holdings Limited's thrombosis business in Europe for €641.9 million. The portfolio consists of well-established injectable anticoagulants sold in Europe under the brand names — Arixtra, Fraxiparine, Mono-Embolex and Orgaran.
Share Price Performance
Mylan’s stock has lost 27.7% in the year so far compared with the industry’s decline of 10.3%.
Other Stocks to Consider
Here are a few other companies worth considering, as per our model these too have the right mix of elements to beat on earnings this reporting cycle.
Geron (GERN - Free Report) has an Earnings ESP of +6.25% and a Zacks Rank #3.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
Image: Bigstock
Mylan (MYL) to Report Q3 Earnings: Is a Beat in the Cards?
Mylan N.V. is expected to beat on earnings when it reports third-quarter 2020 results on Nov 6.
The company’s performance has been excellent, beating earnings estimates in the trailing four quarters by 7.57%, on average. In the last reported quarter, the company’s earnings beat estimates by 16.84%.
Mylan N.V. Price, Consensus and EPS Surprise
Mylan N.V. price-consensus-eps-surprise-chart | Mylan N.V. Quote
Why a Likely Earnings Beat
Our proven model predicts an earnings beat for Mylan this season. 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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: Mylan has an Earnings ESP of +1.69%, as the Zacks Consensus Estimate stands at $1.15 and the Most Accurate Estimate at $1.17.
Zacks Rank: The company has a Zacks Rank #3.
Factors to Consider
The company reports results in three segments on a geographic basis — North America, Europe and the Rest of the World.
North America revenues reported 2% year-over-year growth in the last reported quarter primarily due to higher volumes on sales of existing products along with new product sales. Volumes were primarily driven by the growth of Yupelri and Wixela. This trend most likely continued in the third quarter as well. However, lower EpiPen volumes are likely to be a drag on sales in the to-be-reported quarter.
In August, Mylan and Biocon announced the U.S. launch of Semglee (insulin glargine injection) in vial and pre-filled pen presentations. Incremental sales from this product are likely to have boosted the top line. The Zacks Consensus Estimate for this segment’s sales is $1.1 billion.
Net sales in Europe were down 6% in the previous quarter due to lower volumes from net sales of existing products due to COVID-19. Sales have most likely declined in the quarter under review as well. The Zacks Consensus Estimate for this segment’s sales is $1 billion.
The Rest of the World segment’s net sales were down 10% in the previous quarter due to the unfavorable impact of foreign currency translation and lower volumes from net sales of existing products, driven by the negative impact of COVID-19 in many emerging markets, including China. Similar trends have most likely prevailed in the third quarter. The Zacks Consensus Estimate for this segment’s sales is $793 million.
Concurrent with the second-quarter results, Mylan stated that overall recovery from COVID-19 impacts will occur slower than anticipated and may continue throughout the rest of the year. Investors will be keen to know the magnitude of the impact of the same in the third quarter and the rest of the year.
Key Anticipated Updates
Mylan and Pfizer Inc. (PFE - Free Report) recently announced that the U.S. Federal Trade Commission (FTC) accepted a proposed consent order, which concludes the FTC’s review of the proposed combination of Mylan and Pfizer’s Upjohn business. The parties have now obtained all required antitrust clearances for the proposed transaction. The combination is expected to close on Nov 16, 2020, when the combined company will be renamed Viatris Inc. Upon completion of the merger, Pfizer’s stockholders, as of the record date, will own 57% of the outstanding shares of Viatris common stock and Mylan’s shareholders will own 43% of the outstanding shares of the same. The companies have also received the final approval from the European Commission (EC) for the proposed combination of Mylan and Pfizer's Upjohn business.
In September, Mylan announced an agreement to acquire Aspen Pharmacare Holdings Limited's thrombosis business in Europe for €641.9 million. The portfolio consists of well-established injectable anticoagulants sold in Europe under the brand names — Arixtra, Fraxiparine, Mono-Embolex and Orgaran.
Share Price Performance
Mylan’s stock has lost 27.7% in the year so far compared with the industry’s decline of 10.3%.
Other Stocks to Consider
Here are a few other companies worth considering, as per our model these too have the right mix of elements to beat on earnings this reporting cycle.
Regenxbio, Inc. (RGNX - Free Report) has an Earnings ESP of +4.76% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Geron (GERN - Free Report) has an Earnings ESP of +6.25% and a Zacks Rank #3.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>