Mylan Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Mylan (NASDAQ:MYL) will unveil its latest earnings on Thursday, October 25, 2012. Mylan is a global pharmaceutical company that develops, licenses, manufactures, markets, and distributes pharmaceuticals and active pharmaceutical ingredients.

Mylan Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 77 cents per share, a rise of 40% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from 76 cents. Between one and three months ago, the average estimate moved up. It has been unchanged at 77 cents during the last month. For the year, analysts are projecting profit of $2.52 per share, a rise of 28.6% from last year.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 5 cents, reporting net income of 60 cents per share against a mean estimate of profit of 55 cents per share.

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Wall St. Revenue Expectations: On average, analysts predict $1.85 billion in revenue this quarter, a rise of 17.1% from the year-ago quarter. Analysts are forecasting total revenue of $6.87 billion for the year, a rise of 12.1% from last year’s revenue of $6.13 billion.

A Look Back: In the second quarter, profit fell 5.4% to $138.6 million (33 cents a share) from $146.4 million (33 cents a share) the year earlier, but exceeded analyst expectations. Revenue rose 7.5% to $1.69 billion from $1.57 billion.

Stock Price Performance: Between July 26, 2012 and October 19, 2012, the stock price rose 90 cents (3.9%), from $22.75 to $23.65. The stock price saw one of its best stretches over the last year between July 12, 2012 and July 19, 2012, when shares rose for six straight days, increasing 4.8% (+$1.03) over that span. It saw one of its worst periods between October 4, 2012 and October 10, 2012 when shares fell for five straight days, dropping 3% (-73 cents) over that span.

Key Stats:

After last quarter’s profit drop broke a string of income increases, this earnings announcement is definitely a chance for a rebound. Net income rose 9.4% in the third quarter of the last fiscal year, more than sixfold in the fourth quarter of the last fiscal year and 23.9% in the first quarter before declining in the second quarter.

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 16.3% in the third quarter of the last fiscal year, 6.7% in the fourth quarter of the last fiscal year and 9.9% in the first quarter before increasing again in the second quarter.

Analyst Ratings: With 11 analysts rating the stock a buy, one rating it a sell and five rating the stock a hold, there are indications of a bullish stance by analysts.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.73 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term. The company regressed in this liquidity measure from 1.77 in the first quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased 2.5% to $2.16 billion while assets rose 0.3% to $3.75 billion.

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

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