Mylan Inc Earnings Cheat Sheet: Streak of Three Straight Quarters of Expanding Margins Snapped, but Profit Rises

S&P 500 (NYSE:SPY) component Mylan Inc (NASDAQ:MYL) reported net income above Wall Street’s expectations for the third 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 for the Third Quarter

Results: Net income for the drug company rose to $156.7 million (36 cents per share) vs. $143.2 million (33 cents per share) in the same quarter a year earlier. This marks a rise of 9.4% from the year earlier quarter.

Revenue: Rose 16.9% to $1.57 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: MYL reported adjusted net income of 55 cents per share. By that measure, the company beat the mean estimate of 51 cents per share. It beat the average revenue estimate of $1.54 billion.

Quoting Management: Mylan Chairman and CEO Robert J. Coury said: “We have once again delivered a quarter of strong top-line and bottom-line growth, a continued testament to the scale and diversity of our powerful global platform. I would like to note in particular the very impressive results of our specialty segment, Dey Pharma. As a result of strong execution across this business, Dey’s performance is accelerating and it continues to be an important and exciting asset and growth driver for Mylan-one which we will continue to build on in the future.”

Key Stats:

Revenue has risen the past four quarters. Revenue increased 15% to $1.57 billion in the second quarter. The figure rose 12.1% in the first quarter from the year earlier and climbed 6.1% in the fourth quarter of the last fiscal year from the year-ago quarter.

The company has now beaten estimates the last two quarters. In the second quarter, it topped expectations with net income of 52 cents versus a mean estimate of net income of 45 cents per share.

Looking Forward: The outlook for the company’s results in the upcoming quarter is unfavorable. The average estimate for the fourth quarter is 53 cents per share, down from 56 cents ninety days ago. The average estimate for the fiscal year is now $2 per share, down from $2.02 sixty days ago.

Competitors to Watch: Pfizer Inc. (NYSE:PFE), Watson Pharmaceuticals, Inc. (NYSE:WPI), Par Pharmaceutical Companies, Inc. (NYSE:PRX), Impax Laboratories, Inc. (NASDAQ:IPXL), Merck & Co., Inc. (NYSE:MRK), Teva Pharmaceutical Industries Ltd (NASDAQ:TEVA), Lannett Company, Inc. (AMEX:LCI), Novartis AG (NYSE:NVS), Forest Laboratories, Inc. (NYSE:FRX), and Taro Pharmaceutical Industries Ltd. (TAROF).

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(Source: Xignite Financials)