What Drove Mylan Earnings in Q3
Mylan reported better-than-expected quarterly results late Monday, and shares rose sharply in Friday's premarket.
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When Mylan N.V. (NASDAQ: MYL) reported its most recent quarterly results after the markets closed on Monday, the company said that it had $1.25 in earnings per share (EPS) and $2.86 billion in revenue. The consensus estimates had called for $1.17 in EPS and $2.87 billion in revenue. In the third quarter of last year, it said it had EPS of $1.10 on revenue of $2.99 billion.
During the most recent quarter, the decrease in total revenues included lower net sales in the North America segment of 14%. This decrease was partially offset by increased net sales in the Rest of World segment of 4%. Net sales in the Europe segment were essentially flat. The overall decrease in total revenues was primarily driven by a decrease in net sales from existing products.
In terms of its segments, Mylan reported as follows:
- Net sales in the North America segment totaled $1.01 billion in the current quarter, a decrease of $159.9 million or 14% when compared to the prior year period.
- Net sales in the Europe segment totaled $1.04 billion in the current quarter, an increase of $0.5 million, when compared to the prior year period.
- Net sales in the Rest of World segment totaled $773.7 million in the current quarter, an increase of $30.4 million, or 4% when compared to the prior year period.
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Looking ahead to the fourth quarter, consensus estimates call for $1.42 in EPS and $3.14 billion in revenue.
Heather Bresch, Mylan’s CEO, commented:
Mylan’s third quarter performance was in line with our expectations and we delivered solid year-over-year growth. Our confidence in the company’s bright future extends well beyond any single factor or particular quarter, including the current, short-term macro market turbulence our industry is experiencing. Year-to-date, we have launched nearly 475 new products across our segments, including a record number of complex generics and biosimilars for Mylan. These medicines represent many different therapeutic categories, channels and dosage forms.
Shares of Mylan closed Monday at $31.37, with a consensus analyst price target of $44.75. The stock has a 52-week trading range of $30.33 to $47.82. Following the announcement, the stock was up over 8% at $34.05 in early trading indications Tuesday.
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Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics. Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications. A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.
