Earnings Preview: What to Expect From Viatris' Report

With a market cap of $13.6 billion, Canonsburg, Pennsylvania-based Viatris Inc. (VTRS) offers a diverse range of pharmaceuticals, including branded, generic, and biosimilar products. It operates across various therapeutic areas and serves markets worldwide through four key segments: Developed Markets, Greater China, JANZ, and Emerging Markets. VTRS is expected to unveil its fiscal Q3 earnings results before the market opens on Thursday, Nov. 7.

Before the event, analysts anticipated the generic drugmaker to report a profit of $0.68 per share, down 12.8% from $0.78 per share in the same quarter last year. The company has surpassed Wall Street's earnings projections in two of the past four quarters while missing on two other occasions. VTRS exceeded the consensus estimate by a margin of 1.5% in the most recent quarter.

For fiscal 2024, analysts anticipate VTRS to report EPS of $2.67, down 8.9% from $2.93 in fiscal 2023.

Over the past 52 weeks, VTRS' shares have returned 27.5%, underperforming the broader S&P 500 Index's ($SPX) 38.7% gain. However, the stock has outpaced the Health Care Select Sector SPDR Fund's (XLV) 17.5% rise over the same period.

Despite reporting a net loss of $326.4 million, Viatris stock jumped 6.5% on Aug. 8 due to the company's Q2 earnings report, which included positive adjusted earnings per share of $0.69 that exceeded analysts' expectations of $0.68. Investors were encouraged by the announcement of completed divestitures, signaling a potential "inflection point" for future growth. Additionally, Viatris raised its full-year new product revenue forecast, increasing the expected range to $500 million to $800 million, further boosting investor confidence.

Analysts' consensus rating on Viatris stock is cautious, with a "Hold" overall rating. Out of six analysts covering the stock, opinions include one "Strong Buy," three "Holds," one "Moderate Sell," and one "Strong Sell." As of writing, VTRS is trading below the average analyst price target of $13.20.

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On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.

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