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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