S&P 500 component Mylan Inc. reported net income above Wall Street’s expectations for the fourth quarter. Mylan is a global pharmaceutical company that develops, licenses, manufactures, markets, and distributes pharmaceuticals and active pharmaceutical ingredients.
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Mylan Earnings Cheat Sheet for the Fourth Quarter
Results: Net income for the drug company rose to $129.5 million (30 cents per share) vs. $2.6 million (one cent per share) in the same quarter a year earlier. This marks a substantial increase from the year-earlier quarter.
Revenue: Rose 6.7% to $1.53 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Mylan Inc. reported adjusted net income of 53 cents per share. By that measure, the company beat the mean estimate of 50 cents per share. Analysts were expecting revenue of $1.56 billion.
Quoting Management: Heather Bresch, Mylan’s Chief Executive Officer stated: “Our excellent financial results once again demonstrate our ability to deliver significant growth while continuing to manage the inherent challenges of our industry, as well as global macroeconomic headwinds. Thanks to the dedication and hard work of our employees around the world, we delivered a very strong finish to a very strong year. On the heels of the momentum that we’ve built in 2011, we enter what we believe will be one of the best years in Mylan’s history, confident, focused and as committed as ever to delivering on our business strategy and financial targets.”
Key Stats:
Revenue has increased for four quarters in a row. Revenue increased 16.3% to $1.58 billion in the third quarter. The figure rose 15% in the second quarter from the year earlier and climbed 12.1% in the first quarter from the year-ago quarter.
The company has now topped analyst estimates for the last three quarters. It beat the mark by 4 cents in the third quarter and by 7 cents in the second quarter.
Margins rose in the third quarter after falling the quarter before. Gross margins grew to 42.1%, up 1.7 percentage points from the year-earlier quarter. In the second quarter, the figure rose one percentage points to 41.8% from the year earlier quarter.
Looking Forward: For the next quarter, analysts are growing pessimistic about the company’s expected results. The average estimate for the first quarter of the next fiscal year is 53 cents per share, dropping from 54 cents a month ago. The average estimate for the fiscal year has remained at $2 per share.
(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com
To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com
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