Mylan (MYL) announced its first-quarter numbers for 2015 on May 5. The company missed Wall Street analysts’ adjusted EPS (earnings per share) estimate of $0.71 by 1.4%. Meanwhile, 1Q15 EPS was up 6% over EPS in 1Q14 on account of increasing revenues. The company reported $309 million in adjusted net income in the quarter.
Mylan’s competitor Teva (TEVA) posted its 1Q15 earnings on April 30, 2015, and beat Wall Street adjusted EPS estimates by a wide ~9% margin. Also, it raised its financial outlook for 2015. For more on this topic, read Highlights of Teva’s 1Q15 Earnings: Raises Financial Outlook for 2015.
Actavis (ACT) will release its 1Q15 financial results on May 11.
Following are the key highlights of Mylan’s 1Q15 earnings:
- the acquisition of Abbott Laboratories’ non-US developed markets specialty and branded generics business was completed
- on April 6, 2015, Mylan offered to buy Perrigo (PRGO) for $28.9 billion
- revenues were up 9% from 1Q14
- adjusted gross profit was up 14% from 1Q14
- adjusted free cash flow was up 35% from 1Q14
- the company affirmed its full-year outlook
Mylan is one of the leading companies in the global generics pharmaceutical industry. It operates through two segments:
With the acquisition of Abbott Laboratories’ (ABT) non-US developed markets specialty and branded generics business, Mylan relocated its headquarters to the Netherlands. In 2014, Mylan generated revenues to the tune of ~$7 billion.
Investors that would like access to the generic pharmaceutical industry, including Mylan, might consider pharmaceutical funds such as the iShares US Healthcare ETF (IYH) and the First Trust Health Care AlphaDEX ETF (FXH). Generic drug companies make up approximately 5.38% and 6.74% of these funds’ total holdings, respectively
Overview of this series
At Market Realist, we believe that knowing more about a company helps investors make better investment decisions. Our earnings review will help you understand growth or declines in EPS, revenue drivers, and key product growth. We’ll also look at Mylan’s strategic view on its offer to buy Perrigo that management discussed during its 1Q15 earnings call.