Mylan Earnings: Tops Revenue Estimate, Net Income Drops

S&P 500 (NYSE:SPY) component Mylan Inc. (NASDAQ:MYL) reported its results for the second quarter. Mylan is a global pharmaceutical company that develops, licenses, manufactures, markets, and distributes pharmaceuticals and active pharmaceutical ingredients.

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Mylan Inc. Earnings Cheat Sheet

Results: Net income for the medicine-generic drugs fell to $138,550 (33 cents per share) vs. $146.4 million (33 cents per share) a year earlier. This is a decline of 99.9% from the year-earlier quarter.

Revenue: Rose 7.5% to $1.69 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Mylan Inc. fell short of the mean analyst estimate of 55 cents per share. Analysts were expecting revenue of $1.66 billion.

Quoting Management: Mylan Chief Executive Officer, Heather Bresch commented: “Mylan delivered another very strong quarter of top- and bottom-line growth, driven by more than 50% growth in our Specialty business, double-digit growth in North America and strong performance of our antiretroviral business. We delivered this growth while continuing to invest in our global platform, through increased spending on research and development and sales and marketing programs, in order to position our business for continued long-term success. As we look at the rest of the year, we continue to anticipate that the third quarter will be by far our strongest of the year, with a fourth quarter similar to or slightly higher than the second quarter.”

Key Stats:

Last quarter’s profit decrease breaks a streak of four consecutive quarters of year-over-year profit increases. In the first quarter, net income rose 23.9% from the year earlier, while the figure increased more than sixfold in the fourth quarter of the last fiscal year, 9.4% in the third quarter of the last fiscal year and 69.8% in the second quarter of the last fiscal year.

Revenue has risen the past four quarters. Revenue increased 9.9% to $1.59 billion in the first quarter. The figure rose 6.7% in the fourth quarter of the last fiscal year from the year earlier and climbed 16.3% in the third quarter of the last fiscal year from the year-ago quarter.

After beating analyst estimates for the two previous quarters, the company fell short of forecasts. In the first quarter, it topped the mark by one cent, and in the fourth quarter of the last fiscal year, it was ahead by 3 cents.

Looking Forward: Analysts appear increasingly optimistic about the company’s results for the next quarter. The average estimate for the third quarter has moved up from 70 cents a share to 76 cents over the last ninety days. The average estimate for the fiscal year is $2.48 per share, a rise from $2.42 ninety days ago.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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