Why Mylan Is Paying the Price for Q2
Mylan reported disappointing quarterly results before the markets opened on Wednesday, and shares retreated afterward.
When Mylan N.V. (NASDAQ: MYL) reported its most recent quarterly results before the markets opened on Wednesday, the company posted $1.07 in earnings per share (EPS) and $2.81 billion in revenue. Consensus estimates from Thomson Reuters had called for $1.22 in EPS and $2.96 billion in revenue, and the second quarter of last year had EPS of $1.10 on $2.96 billion in revenue.
During the most recent quarter, the decrease in total revenues of 5% was primarily driven down by lower sales in the North America segment. Although this was partially offset by gains seen in the European segment and the Rest of the World.
In terms of its segments, the company reported as follows:
- North America revenues decreased 22% year over year to $1.00 billion.
- Europe revenues increased 4% to $990.6 million.
- Rest of the World revenues increased 10% to $764.1 million.
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Looking ahead to the full year, the company expects to see EPS in the range of $4.55 to $4.90 and revenues between $11.25 billion and $12.25 billion. The consensus estimates call for $5.25 in EPS and $12.17 billion in revenue for the year.
Heather Bresch, Mylan CEO, commented:
During the second quarter, Mylan continued to do its part to expand access to medicine around the world. Our Europe and Rest of World segments continue to deliver growth in line with our expectations. However, our efforts to serve patients in the U.S. have been shaped by the industry’s transformation there, and our results and guidance for 2018 are directly correlated with the ongoing rebasing of the U.S. healthcare environment. That said, the fundamentals of Mylan’s global business remain strong. We’re especially confident in our ability to deliver on Mylan’s long-stated global strategy, which is predicated on driving access to medicine through scale, a diversified portfolio and geographic reach. The result is a durable global business capable of delivering on our mission for years to come.
Shares of Mylan were last seen down about 3% at $37.41, with a consensus analyst price target of $48.74 and a 52-week trading range of $29.39 to $47.82.
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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.
