The 10-second takeaway
For the quarter ended March 31 (Q1), Mylan met expectations on revenues and beat slightly on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share grew significantly.
Gross margins increased, operating margins dropped, net margins expanded.
Mylan logged revenue of $1.59 billion. The 17 analysts polled by S&P Capital IQ foresaw revenue of $1.58 billion on the same basis. GAAP reported sales were 9.9% higher than the prior-year quarter's $1.45 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.52. The 21 earnings estimates compiled by S&P Capital IQ forecast $0.51 per share. GAAP EPS of $0.30 for Q1 were 30% higher than the prior-year quarter's $0.23 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 41.8%, 100 basis points better than the prior-year quarter. Operating margin was 15.6%, 70 basis points worse than the prior-year quarter. Net margin was 8.1%, 90 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.71 billion. On the bottom line, the average EPS estimate is $0.57.
Next year's average estimate for revenue is $6.90 billion. The average EPS estimate is $2.41.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 547 members out of 580 rating the stock outperform, and 33 members rating it underperform. Among 162 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 157 give Mylan a green thumbs-up, and five give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Mylan is outperform, with an average price target of $27.19.
The drug and healthcare investing landscape is littered with also-rans and a few major winners. Is Mylan the right stock for you? Read "Discover the Next Rule-Breaking Multibagger" to learn about a company David Gardner believes will be a phenomenal success over the next few years. Click here for instant access to this free report.
- Add Mylan to My Watchlist.
Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.