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Viatris (VTRS) to Report Q4 Earnings: Is a Beat in Store?
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Viatris (VTRS - Free Report) , a global healthcare company, is scheduled to report fourth-quarter results on Feb 28, 2024.
The company’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 6.02%. In the last reported quarter, the company delivered an average surprise of 5.41%.
Viatris reports segmental results based on markets and geography — Developed Markets, Emerging Markets, Japan, Australia and New Zealand (JANZ) and Greater China.
The negative impact of foreign exchange rates is likely to have affected the fourth-quarter top line.
Solid performance of generics in Europe and strong demand for Yupelri are likely to have driven sales in Developed Markets. The generics portfolio delivered better-than-expected results, driven by new launches such as Breyna, the generic for Symbicort, lisdexamfetamine (Vyvanse generic) and the continued contribution of lenalidomide in the previous quarter. The momentum is likely to have continued in the to-be-reported quarter.
The Zacks Consensus Estimate for revenues from this geography is pinned at $2.4 billion.
Sales from Emerging Markets are likely to have increased on the strength of generics and branded drugs like Lyrica, Zoloft and Effexor. The Zacks Consensus Estimate for revenues from Emerging Markets is pegged at $686 million.
In the JANZ region, the brands performed in line with management’s expectations, while generics were slightly below the same, primarily due to customer buying patterns in the previous quarter. The performance has likely improved in the fourth quarter. The Zacks Consensus Estimate for revenues from JANZ markets is pinned at $350 million.
Sales from Greater China markets are also likely to have increased, primarily due to retail-driven products. The Zacks Consensus Estimate for revenues from this geography is pegged at $568 million.
On the third quarter’s call, Viatris stated that it remains on track to deliver approximately $450-$500 million of new product revenues in 2023.
VTRS completed the acquisitions of 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 in the fourth quarter.
Per management, the gross margin is likely to have been negatively impacted due to portfolio and segmental mix and anticipated higher costs. SG&A and R&D expenses, too, are likely to have risen during the quarter.
Recent Updates
Viatris had earlier announced agreements on planned divestitures to simplify the organization.
The company will divest its Over-the-Counter (OTC) business for $2.17 billion. Viatris has, however, decided to retain its rights for Viagra and Dymista, as well as other select OTC assets within certain markets.
Viatris has also entered into definitive agreements to divest its Women's Healthcare business. It will also divest its Active Pharmaceutical Ingredients business in India. VTRS entered into an agreement to divest its rights to women's healthcare products, Duphaston and Femoston, to Theramex.
It has also signed agreements to divest its commercialization rights in certain non-core markets that were acquired as part of the Upjohn Transaction. VTRS expects to close these transactions by the end of the first half of 2024.
Share Price Performance
Viatris’ shares have risen 15.8% in the past year against the industry’s decline of 2.7%.
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 0.0% as both the Zacks Consensus Estimate and the Most Accurate Estimate are pinned at 67 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.
Apellis Pharmaceuticals (APLS - Free Report) has an Earnings ESP of +28.35% and a Zacks Rank #2 at present.
APLS beat on earnings in two of the trailing four quarters and missed in the other two, delivering an average negative surprise of 3.91%. APLS is scheduled to release fourth-quarter 2023 results on Feb 27. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Esperion Therapeutics (ESPR - Free Report) has an Earnings ESP of +24.53% and a Zacks Rank #2 at present. ESPR is scheduled to release fourth-quarter 2023 results on Feb 27.
ESPR beat on earnings in three of the trailing four quarters and missed in one, delivering an average surprise of 7.50%.
Celldex Therapeutics (CLDX - Free Report) has an Earnings ESP of +9.45% and a Zacks Rank #3 at present.
CLDX beat on earnings in two of the trailing four quarters, met in one and missed in the other one, delivering a negative surprise of 3.56%.
Image: Bigstock
Viatris (VTRS) to Report Q4 Earnings: Is a Beat in Store?
Viatris (VTRS - Free Report) , a global healthcare company, is scheduled to report fourth-quarter results on Feb 28, 2024.
The company’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 6.02%. In the last reported quarter, the company delivered an average surprise of 5.41%.
Viatris Inc. Price, Consensus and EPS Surprise
Viatris Inc. price-consensus-eps-surprise-chart | Viatris Inc. Quote
Factors to Consider
Viatris reports segmental results based on markets and geography — Developed Markets, Emerging Markets, Japan, Australia and New Zealand (JANZ) and Greater China.
The negative impact of foreign exchange rates is likely to have affected the fourth-quarter top line.
Solid performance of generics in Europe and strong demand for Yupelri are likely to have driven sales in Developed Markets. The generics portfolio delivered better-than-expected results, driven by new launches such as Breyna, the generic for Symbicort, lisdexamfetamine (Vyvanse generic) and the continued contribution of lenalidomide in the previous quarter. The momentum is likely to have continued in the to-be-reported quarter.
The Zacks Consensus Estimate for revenues from this geography is pinned at $2.4 billion.
Sales from Emerging Markets are likely to have increased on the strength of generics and branded drugs like Lyrica, Zoloft and Effexor. The Zacks Consensus Estimate for revenues from Emerging Markets is pegged at $686 million.
In the JANZ region, the brands performed in line with management’s expectations, while generics were slightly below the same, primarily due to customer buying patterns in the previous quarter. The performance has likely improved in the fourth quarter. The Zacks Consensus Estimate for revenues from JANZ markets is pinned at $350 million.
Sales from Greater China markets are also likely to have increased, primarily due to retail-driven products. The Zacks Consensus Estimate for revenues from this geography is pegged at $568 million.
On the third quarter’s call, Viatris stated that it remains on track to deliver approximately $450-$500 million of new product revenues in 2023.
VTRS completed the acquisitions of 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 in the fourth quarter.
Per management, the gross margin is likely to have been negatively impacted due to portfolio and segmental mix and anticipated higher costs. SG&A and R&D expenses, too, are likely to have risen during the quarter.
Recent Updates
Viatris had earlier announced agreements on planned divestitures to simplify the organization.
The company will divest its Over-the-Counter (OTC) business for $2.17 billion. Viatris has, however, decided to retain its rights for Viagra and Dymista, as well as other select OTC assets within certain markets.
Viatris has also entered into definitive agreements to divest its Women's Healthcare business. It will also divest its Active Pharmaceutical Ingredients business in India. VTRS entered into an agreement to divest its rights to women's healthcare products, Duphaston and Femoston, to Theramex.
It has also signed agreements to divest its commercialization rights in certain non-core markets that were acquired as part of the Upjohn Transaction. VTRS expects to close these transactions by the end of the first half of 2024.
Share Price Performance
Viatris’ shares have risen 15.8% in the past year against the industry’s decline of 2.7%.
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 0.0% as both the Zacks Consensus Estimate and the Most Accurate Estimate are pinned at 67 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.
Apellis Pharmaceuticals (APLS - Free Report) has an Earnings ESP of +28.35% and a Zacks Rank #2 at present.
APLS beat on earnings in two of the trailing four quarters and missed in the other two, delivering an average negative surprise of 3.91%. APLS is scheduled to release fourth-quarter 2023 results on Feb 27. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Esperion Therapeutics (ESPR - Free Report) has an Earnings ESP of +24.53% and a Zacks Rank #2 at present. ESPR is scheduled to release fourth-quarter 2023 results on Feb 27.
ESPR beat on earnings in three of the trailing four quarters and missed in one, delivering an average surprise of 7.50%.
Celldex Therapeutics (CLDX - Free Report) has an Earnings ESP of +9.45% and a Zacks Rank #3 at present.
CLDX beat on earnings in two of the trailing four quarters, met in one and missed in the other one, delivering a negative surprise of 3.56%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.