Viatris Inc. Braces for Q4 Earnings Report Amidst Mixed Market Performance
Viatris Inc. (VTRS), based in Canonsburg, Pennsylvania, is a prominent global healthcare provider focused on helping people live healthier lives. With a market cap of $13.3 billion, the company presents a wide range of products, including branded, generic, over-the-counter medicines, and biosimilars. Its Q4 earnings report is scheduled for release on Wednesday, Feb. 26.
Anticipated Earnings and Recent Performance
Analysts predict that Viatris will announce a profit of $0.57 per share, which represents a decline of 6.6% compared to last year’s $0.61 per share for the same quarter. In recent history, Viatris has exceeded earnings expectations in two of the last four quarters, while it missed projections on two other occasions.
In its most recent quarter, the firm posted an EPS of $0.75, surpassing the consensus estimate by 10.3%. This earnings success resulted from the company’s effective cost management strategies.
Fiscal 2024 Projections
For fiscal 2024, analysts predict that Viatris will report an EPS of $2.68, an 8.5% decrease from $2.93 in fiscal 2023.
Over the past year, Viatris’ shares have declined by 5.4%, significantly trailing the broader S&P 500 Index’s ($SPX) 25.8% gains and the Health Care Select Sector SPDR Fund’s (XLV) 2.9% rise during the same period.
Challenges such as declining revenues and unfavorable earnings estimates have held Viatris back compared to the wider market and its peers. However, on Nov. 7, the company experienced a 13.5% surge in shares following its Q3 earnings report. The total revenue for that quarter was $3.75 billion, reflecting a 4.8% year-over-year decline but exceeding Wall Street’s estimate of $3.68 billion. Additionally, the company reaffirmed its outlook for 2024, predicting around 2% revenue growth on a divestiture-adjusted operational basis.
Analysts’ Outlook
Currently, analysts maintain a cautious stance on Viatris stock, reflected in an overall “Hold” rating. Out of seven analysts monitoring the stock, one recommends a “Strong Buy,” four favor a “Hold,” one suggests a “Moderate Sell,” and another has a “Strong Sell” rating.
The average analyst price target for Viatris stands at $13.17, indicating a potential upside of 18.2% from current price levels.
On the date of publication, Rashmi Kumari did not hold (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data herein are for informational purposes only. For further details, please refer to the Barchart Disclosure Policy here.
The views and opinions expressed here are those of the author and do not necessarily reflect those of Nasdaq, Inc.
