The 10-second takeaway
For the quarter ended March 31 (Q1), Mylan missed estimates on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded slightly. Non-GAAP earnings per share increased significantly. GAAP earnings per share dropped.
Gross margins expanded, operating margins shrank, net margins contracted.
Mylan reported revenue of $1.63 billion. The 16 analysts polled by S&P Capital IQ foresaw sales of $1.69 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $0.62. The 20 earnings estimates compiled by S&P Capital IQ anticipated $0.62 per share. Non-GAAP EPS of $0.62 for Q1 were 19% higher than the prior-year quarter's $0.52 per share. GAAP EPS of $0.27 for Q1 were 10.0% lower than the prior-year quarter's $0.30 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 42.5%, 50 basis points better than the prior-year quarter. Operating margin was 13.2%, 420 basis points worse than the prior-year quarter. Net margin was 6.6%, 150 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.76 billion. On the bottom line, the average EPS estimate is $0.69.
Next year's average estimate for revenue is $7.14 billion. The average EPS estimate is $2.87.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 536 members out of 571 rating the stock outperform, and 35 members rating it underperform. Among 171 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 163 give Mylan a green thumbs-up, and eight 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 $31.92.
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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. The Motley Fool has no position in any of the stocks mentioned. 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.