Viatris Inc. Faces Earnings Drop, Analysts Weigh In

Investors are gearing up for Viatris Inc.'s upcoming Q3 earnings report, expected to reveal a decline in profit expectations. With an anticipated EPS drop, analysts maintain a cautious 'Hold' rating on the stock, reflecting mixed sentiments in the market.

Date: 28-10-2024

AI Rating: 5

Viatris Inc. (VTRS) is poised for a significant market event with its upcoming Q3 earnings report, slated for November 7. Analysts project a profit of $0.68 per share, indicating a 12.8% decrease from the prior year's $0.78 per share. This anticipated decline in Earnings Per Share (EPS) may raise concerns among investors and could exert downward pressure on the stock price if actual results fail to meet these forecasts.

The company has had a mixed performance track record, surpassing Wall Street's predictions in two of the last four quarters while falling short in the other two. The recent performance, exceeding estimates by 1.5%, suggests that there is potential for positive surprises. However, the expected drop in EPS for fiscal 2024 to $2.67 from $2.93 in fiscal 2023 further amplifies concerns about declining profitability.

Viatris has faced challenges, reporting a net loss of $326.4 million in the past quarter. However, the stock responded positively with a 6.5% increase following the Q2 earnings report, driven by adjusted earnings of $0.69 that beat analyst expectations and significant announcements about completed divestitures and a raised revenue forecast for new products.

The consensus among analysts remains cautious, as indicated by a 'Hold' rating. This reflects a range of opinions from moderate optimism to more cautious stances, underscoring the mixed expectations surrounding the stock performance. Additionally, despite VTRS shares returning 27.5% in the last 52 weeks, this is underwhelming compared to the overall S&P 500's 38.7% gain.

Stocks: VTRS