Mylan Laboratories' Prescription: Fool by Numbers

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On Nov. 1, Mylan Laboratories (NYSE: MYL) released third-quarter earnings for the period ended Sept. 30.

• There was robust top-line and earnings growth compared to the year-ago quarter.
  
• Mylan's fentanyl transdermal system was the key growth driver, contributing 20% to total revenues.
  
• Net profit increased 116.8% to $78 million, capitalizing on double-digit revenue growth and greatly improved margins.
  
• EPS growth was aided by a shrinking share count.

(Figures in millions, except per-share data)

Income Statement Highlights

	Avg. Est.	Q3 2006	Q3 2005	Change
Sales	$351	$366.7	$298.0	23%
Net Profit*	--	$77.5	$35.8	116.8%
EPS	$0.32	$0.36	$0.16	125%
Diluted Shares	--	215.1	229.3	(6.2%)

*Net profit does not include income from discontinued operations.

Get back to basics with a look at the income statement.

Margin Checkup

	Q3 2006	Q3 2005	Change*
Gross Margin	53.48%	48.07%	5.41
Operating Margin	36.70%	19.46%	17.24
Net Margin	21.15%	12.00%	9.15

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets	Q3 2006	Q3 2005	Change
Cash + ST Invest.	$611.7	$631.5	(3.1%)
Accounts Rec.	$252.5	$239.0	5.7%
Inventory	$303.3	$255.4	18.8%

Learn the ways of the balance sheet.

Cash Flow Highlights

A statement of cash flows was not provided.

Find out why Fools always follow the money.

Related Companies:

• Barr Pharmaceuticals (NYSE: BRL)
• Teva Pharmaceutical Industries (Nasdaq: TEVA)
• Watson Pharmaceutical (NYSE: WPI)

Related Foolishness:

• The Coming Generic Drug Boom
• Mylan's Biogeneric Play
• Unwelcome Guests at ImClone

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Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean. This data has been provided by Netscribes. To provide feedback on this article, please click on the "feedback" button below.