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:

Want to weigh in on Mylan or any other pharmaceuticals? Check out CAPS, The Motley Fool's new stock-picking service, and let your voice be heard!

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.