Mylan Crashes to Multiyear Low on Missed Earnings
Mylan released its most recent quarterly earnings report before the markets opened on Wednesday. Unfortunately, the earnings and guidance weren't strong enough to hold up the firm and as a result shares hit a multiyear low.
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Mylan N.V. (NASDAQ: MYL) released its most recent quarterly earnings report before the markets opened on Wednesday. Unfortunately, the earnings and guidance weren’t strong enough to hold up the firm and as a result shares hit a multiyear low in early trading on Wednesday.
The company said that it had $1.10 in earnings per share (EPS) and $2.96 billion in revenue, compared with consensus estimates from Thomson Reuters that called for EPS of $1.16 and $3.04 billion in revenue. The same period of last year reportedly had $1.16 in EPS and revenue of $2.56 billion.
For its business segments, Mylan reported:
- Third party net sales from North America were $1.28 billion for the quarter, a decrease of 9% from last year.
- Third party net sales from Europe were $954.3 million for the quarter, an increase of 59%.
- Third party net sales from Rest of World were $692.6 million for the quarter, an increase of 29%.
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In terms of guidance for the 2017 full year, Mylan expects to see EPS in the range of $4.30 to $4.70 and between $11.5 billion to $12.5 billion in revenue. The consensus estimates are $5.12 in EPS and $12.46 billion in revenue for the year.
On the books, Mylan cash and cash equivalents totaled $612.8 million at the end of the quarter, down from $998.8 million at the end of the previous fiscal year.
Heather Bresch, Mylan CEO, commented:
Our industry, along with the entire healthcare sector, is at an inflection point. This is providing investors an opportunity to differentiate between pharmaceutical companies focused solely on generics and/or specialty medicines and those capable of delivering a broad and diverse portfolio across multiple channels in various geographies, which remains Mylan’s strategy.
Shares of Mylan closed Tuesday at $31.79, with a consensus analyst price target of $46.76 and a 52-week range of $31.28 to $49.91. Following the release of the earnings report, the stock was down over 9% at $28.80 in early trading indications Wednesday.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
