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Mylan Misses on Revenues but Beats on EPS

By Seth Jayson - Updated Apr 7, 2017 at 11:10AM

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Just the facts, Fool.

Mylan (Nasdaq: MYL) reported earnings on Oct. 25. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Mylan missed slightly on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue grew and GAAP earnings per share grew significantly.

Margins increased across the board.

Revenue details
Mylan booked revenue of $1.81 billion. The 18 analysts polled by S&P Capital IQ predicted revenue of $1.85 billion on the same basis. GAAP reported sales were 15% higher than the prior-year quarter's $1.58 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.83. The 21 earnings estimates compiled by S&P Capital IQ predicted $0.77 per share. GAAP EPS of $0.51 for Q3 were 42% higher than the prior-year quarter's $0.36 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 43.6%, 80 basis points better than the prior-year quarter. Operating margin was 18.7%, 70 basis points better than the prior-year quarter. Net margin was 11.7%, 180 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $1.75 billion. On the bottom line, the average EPS estimate is $0.64.

Next year's average estimate for revenue is $6.86 billion. The average EPS estimate is $2.52.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 542 members out of 576 rating the stock outperform, and 34 members rating it underperform. Among 160 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 153 give Mylan a green thumbs-up, and seven 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 $27.18.

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