It has been about a month since the last earnings report for Mylan N.V. . Shares have added about 1.2% in that time frame.
Will the recent positive trend continue leading up to its next earnings release, or is MYL due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Mylan Q4 Earnings Surpass Estimates, Revenues Miss
Mylan reported mixed results for fourth-quarter 2017 as EpiPen sales declined. Adjusted earnings of $1.43 per share beat the Zacks Consensus Estimate of $1.41 but was down from $1.57 reported in the year-ago quarter.
Fourth-quarter revenues of $3.24 billion missed the Zacks Consensus Estimate of $3.27 billion and were down 1% from the prior-year period.
Quarter in Detail
The company posts results in three segments on a geographic basis namely North America, Europe and Rest of World.
North America segment’s third-party net sales came in at $1.30 billion, down 17% on a sales decline of existing products as a result of lower volume and pricing, partially offset by contribution from new products. The generics business in North America experienced higher price erosion than the previous quarters including the impact of the loss of market exclusivity of olmesartan and olmesartan HCTZ. Sales of the EpiPen Auto-Injector plunged significantly (a decrease of $131.9 million) due to effect of the launch of authorized generic and higher governmental rebates.
Third-party net sales from Europe were $1.07 billion, up 16%. This was propelled by new product introductions across the region combined with volume expansion and pricing on existing products. Favorable foreign currency translation had an impact of 9% within the continent.
Rest of World segment’s third-party net sales of $815.7 million was up 12%, driven by new products and increased net sales from the anti-retroviral franchise and higher sales in the emerging markets plus a favourable foreign currency translation had an impact of 3%.
Adjusted gross margin contracted to 55.5% from 56.6% in the year-ago quarter due to lower gross profit from the sales of existing products in North America including the EpiPen Auto-Injector, partially offset by the contributions from new products.
During 2017, Mylan repurchased approximately 12.4 million shares for approximately $500.2 million under its previously approved share repurchase program. In January 2018, Mylan bought back additional ordinary shares worth 9.8 million for approximately $432.0 million and completed the share buyback program.
2017 Results
Revenues for 2017 came in at $11.91 billion, up 8% from 2016. However, the top line missed the Zacks Consensus Estimate of $11.95 billion. While adjusted EPS of $4.56 was down 7% from 2016 but surpassed the consensus mark of $4.54.
2018 Outlook
Mylan expects revenues of $11.75-$13.25 billion in 2018. The Zacks Consensus Estimate of $12.64 billion is well wit hin the guidance provided by the company.Mylan anticipates adjusted EPS of around $5.20-$5.60 in 2018 while the Zacks Consensus Estimate is pegged at $5.34.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates. There has been one revision higher for the current quarter.
VGM Scores
At this time, MYL has a subpar Growth Score of D and a grade with the same score on the momentum front. The stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.
Overall, stocks has an aggregte VGM score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
The company's stock is suitable solely for value based on our styles scores.
Outlook
Estimates have been trending upward for the stock and the magnitude of this revision indicates a downward shift. Notably, MYL has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Why Is Mylan N.V. (MYL) Up 1.2% Since Its Last Earnings Report?
It has been about a month since the last earnings report for Mylan N.V. . Shares have added about 1.2% in that time frame.
Will the recent positive trend continue leading up to its next earnings release, or is MYL due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Mylan Q4 Earnings Surpass Estimates, Revenues Miss
Mylan reported mixed results for fourth-quarter 2017 as EpiPen sales declined. Adjusted earnings of $1.43 per share beat the Zacks Consensus Estimate of $1.41 but was down from $1.57 reported in the year-ago quarter.
Fourth-quarter revenues of $3.24 billion missed the Zacks Consensus Estimate of $3.27 billion and were down 1% from the prior-year period.
Quarter in Detail
The company posts results in three segments on a geographic basis namely North America, Europe and Rest of World.
North America segment’s third-party net sales came in at $1.30 billion, down 17% on a sales decline of existing products as a result of lower volume and pricing, partially offset by contribution from new products. The generics business in North America experienced higher price erosion than the previous quarters including the impact of the loss of market exclusivity of olmesartan and olmesartan HCTZ. Sales of the EpiPen Auto-Injector plunged significantly (a decrease of $131.9 million) due to effect of the launch of authorized generic and higher governmental rebates.
Third-party net sales from Europe were $1.07 billion, up 16%. This was propelled by new product introductions across the region combined with volume expansion and pricing on existing products. Favorable foreign currency translation had an impact of 9% within the continent.
Rest of World segment’s third-party net sales of $815.7 million was up 12%, driven by new products and increased net sales from the anti-retroviral franchise and higher sales in the emerging markets plus a favourable foreign currency translation had an impact of 3%.
Adjusted gross margin contracted to 55.5% from 56.6% in the year-ago quarter due to lower gross profit from the sales of existing products in North America including the EpiPen Auto-Injector, partially offset by the contributions from new products.
During 2017, Mylan repurchased approximately 12.4 million shares for approximately $500.2 million under its previously approved share repurchase program. In January 2018, Mylan bought back additional ordinary shares worth 9.8 million for approximately $432.0 million and completed the share buyback program.
2017 Results
Revenues for 2017 came in at $11.91 billion, up 8% from 2016. However, the top line missed the Zacks Consensus Estimate of $11.95 billion. While adjusted EPS of $4.56 was down 7% from 2016 but surpassed the consensus mark of $4.54.
2018 Outlook
Mylan expects revenues of $11.75-$13.25 billion in 2018. The Zacks Consensus Estimate of $12.64 billion is well wit hin the guidance provided by the company.Mylan anticipates adjusted EPS of around $5.20-$5.60 in 2018 while the Zacks Consensus Estimate is pegged at $5.34.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates. There has been one revision higher for the current quarter.
Mylan N.V. Price and Consensus
Mylan N.V. Price and Consensus | Mylan N.V. Quote
VGM Scores
At this time, MYL has a subpar Growth Score of D and a grade with the same score on the momentum front. The stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.
Overall, stocks has an aggregte VGM score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
The company's stock is suitable solely for value based on our styles scores.
Outlook
Estimates have been trending upward for the stock and the magnitude of this revision indicates a downward shift. Notably, MYL has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.