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Viatris' (VTRS) Q1 Earnings & Sales Lag Estimates, Stock Down
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Viatris Inc. (VTRS - Free Report) delivered adjusted earnings of 67 cents per share in the first quarter of 2024, missing the Zacks Consensus Estimate by a penny. The company recorded adjusted earnings of 77 cents in the year-ago quarter.
Total revenues came in at $3.66 billion, down 1.7% year over year. Revenues include product sales and other revenues. The top line missed the Zacks Consensus Estimate of $3.7 million.
Viatris’ stock is trading down in response to the first-quarter results mainly due to a miss on both earnings and sales fronts. VTRS shares have gained 9% in the year so far compared with the industry’s 4.8% growth.
Image Source: Zacks Investment Research
All growth rates mentioned below are on a year-over-year basis and adjusted for the impact of the proportionate results from the divestitures that closed in 2023 and 2024.
Quarter in Detail
The company reports results in four segments — Developed Markets, Emerging Markets, Japan, Australia and New Zealand (JANZ) and Greater China.
Sales from Developed Markets came in at $2.1 billion, down 1% from the year-ago quarter. The reported number missed the Zacks Consensus Estimate of $2.2 billion.
Sales from Emerging Markets came in at $626.4 million, up 4% from the year-ago quarter but missed the Zacks Consensus Estimate of $643 million.
JANZ generated sales of $317.8 million, up 2% year over year. Sales beat the Zacks Consensus Estimate of $312 million.
Sales from Greater China came in at $543.9 million were flat year over year but beat the Zacks Consensus Estimate of $518 million.
Based on product category, revenues from Brands were down 2% year over year to $2.3 billion. Sales from this category reflected strong growth in Emerging Markets and Europe and expansion of business activities in JANZ, offset by unfavorable channel dynamics in North America and expected base business erosion resulting from government price regulations in Japan and Australia.
Among Brands, Lipitor’s sales were $388.9 million, down 6.9% from the year-ago quarter. Norvasc sales decreased 13% year over year to $176.3 million.
Yupelri sales came in at $55.2 million, up from $47 million generated in the year-ago quarter.
Generics, which include diversified product forms such as extended-release oral solids, injectables, transdermals and topicals and complex generics, posted revenues of $1.3 billion, up 5%. The growth in sales was driven by strong new product launch performance in Developed Markets, along with improved performance of Wixela and solid performance across broad portfolios in Developed and Emerging Markets.
Viatris generated $154 million in new generic product revenues, primarily driven by Breyna (generic for Symbicort) in the United States.
VTRS stated that it is on track to achieve approximately $450 million to $550 million in new product revenues in 2024.
Adjusted gross margin came in at 58.8%, down from 60.4% reported in the year-ago quarter.
In February 2024, VTRS repurchased approximately 19.2 million shares for nearly $250 million as part of its previously announced $2.0 billion share repurchase program. To date, VTRS has repurchased a total of $500 million of shares under this program.
Total revenues are now projected between $14.98 billion and $15.48 billion versus the previous estimate of $15.25 billion and $15.75 billion provided in February 2024.
The guidance was adjusted to reflect the impact of divestitures and acquired IPR&D.
With respect to the impact of divestitures, the women's healthcare business divestiture closed in March 2024 and the API business divestiture is expected to close imminently. The adjusted 2024 financial guidance ranges exclude the expected performance of the women's healthcare business and the API business in India for the remainder of the year, which was included in the guidance provided earlier.
Adjusted earnings per share are now expected in the range of $2.66-$2.81 for 2024 (earlier estimate: $2.70-$2.85).
Zacks Rank and Stocks to Consider
Viatris currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the healthcare industry are Ligand Pharmaceuticals , ANI Pharmaceuticals (ANIP - Free Report) and BridgeBio Pharma (BBIO - Free Report) . While LGND sports a Zacks Rank #1 (Strong Buy), ANIP & BBIO carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 30 days, the Zacks Consensus Estimate for Ligand’s 2024 and 2025 earnings per share (EPS) has remained constant at $4.56 and $5.27, respectively. Shares of LGND are up 15.9% year to date.
In the past 60 days, estimates for ANI Pharmaceuticals’ 2024 EPS have improved from $4.40 to $4.44. Shares of ANIP have jumped 19.9% year to date. ANIP’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 109.06%.
In the past 30 days, the Zacks Consensus Estimate for BBIO’s 2024 loss per share has narrowed from $3.61 to $3.11. BBIO beat estimates in one of the trailing four quarters and missed the mark on the other three occasions, delivering an average surprise of 11.73%.
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Viatris' (VTRS) Q1 Earnings & Sales Lag Estimates, Stock Down
Viatris Inc. (VTRS - Free Report) delivered adjusted earnings of 67 cents per share in the first quarter of 2024, missing the Zacks Consensus Estimate by a penny. The company recorded adjusted earnings of 77 cents in the year-ago quarter.
Total revenues came in at $3.66 billion, down 1.7% year over year. Revenues include product sales and other revenues. The top line missed the Zacks Consensus Estimate of $3.7 million.
Viatris’ stock is trading down in response to the first-quarter results mainly due to a miss on both earnings and sales fronts. VTRS shares have gained 9% in the year so far compared with the industry’s 4.8% growth.
Image Source: Zacks Investment Research
All growth rates mentioned below are on a year-over-year basis and adjusted for the impact of the proportionate results from the divestitures that closed in 2023 and 2024.
Quarter in Detail
The company reports results in four segments — Developed Markets, Emerging Markets, Japan, Australia and New Zealand (JANZ) and Greater China.
Sales from Developed Markets came in at $2.1 billion, down 1% from the year-ago quarter. The reported number missed the Zacks Consensus Estimate of $2.2 billion.
Sales from Emerging Markets came in at $626.4 million, up 4% from the year-ago quarter but missed the Zacks Consensus Estimate of $643 million.
JANZ generated sales of $317.8 million, up 2% year over year. Sales beat the Zacks Consensus Estimate of $312 million.
Sales from Greater China came in at $543.9 million were flat year over year but beat the Zacks Consensus Estimate of $518 million.
Based on product category, revenues from Brands were down 2% year over year to $2.3 billion. Sales from this category reflected strong growth in Emerging Markets and Europe and expansion of business activities in JANZ, offset by unfavorable channel dynamics in North America and expected base business erosion resulting from government price regulations in Japan and Australia.
Among Brands, Lipitor’s sales were $388.9 million, down 6.9% from the year-ago quarter. Norvasc sales decreased 13% year over year to $176.3 million.
Yupelri sales came in at $55.2 million, up from $47 million generated in the year-ago quarter.
Generics, which include diversified product forms such as extended-release oral solids, injectables, transdermals and topicals and complex generics, posted revenues of $1.3 billion, up 5%. The growth in sales was driven by strong new product launch performance in Developed Markets, along with improved performance of Wixela and solid performance across broad portfolios in Developed and Emerging Markets.
Viatris generated $154 million in new generic product revenues, primarily driven by Breyna (generic for Symbicort) in the United States.
VTRS stated that it is on track to achieve approximately $450 million to $550 million in new product revenues in 2024.
Adjusted gross margin came in at 58.8%, down from 60.4% reported in the year-ago quarter.
In February 2024, VTRS repurchased approximately 19.2 million shares for nearly $250 million as part of its previously announced $2.0 billion share repurchase program. To date, VTRS has repurchased a total of $500 million of shares under this program.
Viatris Inc. Price, Consensus and EPS Surprise
Viatris Inc. price-consensus-eps-surprise-chart | Viatris Inc. Quote
2024 Guidance
Total revenues are now projected between $14.98 billion and $15.48 billion versus the previous estimate of $15.25 billion and $15.75 billion provided in February 2024.
The guidance was adjusted to reflect the impact of divestitures and acquired IPR&D.
With respect to the impact of divestitures, the women's healthcare business divestiture closed in March 2024 and the API business divestiture is expected to close imminently. The adjusted 2024 financial guidance ranges exclude the expected performance of the women's healthcare business and the API business in India for the remainder of the year, which was included in the guidance provided earlier.
Adjusted earnings per share are now expected in the range of $2.66-$2.81 for 2024 (earlier estimate: $2.70-$2.85).
Zacks Rank and Stocks to Consider
Viatris currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the healthcare industry are Ligand Pharmaceuticals , ANI Pharmaceuticals (ANIP - Free Report) and BridgeBio Pharma (BBIO - Free Report) . While LGND sports a Zacks Rank #1 (Strong Buy), ANIP & BBIO carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 30 days, the Zacks Consensus Estimate for Ligand’s 2024 and 2025 earnings per share (EPS) has remained constant at $4.56 and $5.27, respectively. Shares of LGND are up 15.9% year to date.
In the past 60 days, estimates for ANI Pharmaceuticals’ 2024 EPS have improved from $4.40 to $4.44. Shares of ANIP have jumped 19.9% year to date. ANIP’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 109.06%.
In the past 30 days, the Zacks Consensus Estimate for BBIO’s 2024 loss per share has narrowed from $3.61 to $3.11. BBIO beat estimates in one of the trailing four quarters and missed the mark on the other three occasions, delivering an average surprise of 11.73%.