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The Things You Need To Know Ahead Of Mylan's Q3 Earnings

Mylan's Q3 Preview: All You Need To Know|NASDAQ: MYL

Investor sentiment on Mylan NV MYL 5.15% shares remain upbeat ahead of the third-quarter results Wednesday after the market closes. The biotech stock and peers within the space gained after Hillary Clinton lostthe presidential election.

Past Performance

In the first two quarters of the current year, the company’s EPS provided positive surprise of 2.7 percent each. Between Q2's print and Tuesday, the stock had lost about 25 percent. The loss has been attributed to several factors, including concerns on drug price increases, the EpiPen controversy and testimony before Congress. Additionally, the SEC has sought documents from Mylan on the products tied to the Medicaid Drug Rebated Program.

What To Watch For

Street analysts expect EPS of $1.46 on revenue of $3.12 billion. On a year-over-year basis, this means Mylan might have recorded 2.10 percent EPS growth on revenue uptick of 15.20 percent. Similarly, on a quarter-over-quarter basis, EPS and revenue may have recorded growth of 25.86 percent and 21.88 percent, respectively.

Voices From The Street

  • BTIG believes the controversy surrounding the EpiPen will have come to an end with November 4's $465 million DoJ settlement. The brokerage lowered its EPS estimates to $4.70 for 2016 and $5.58 for 2017 and reduced its price objective from $60 to $55 while maintaining a Buy rating.
  • Mizuho initiated coverage with a Buy rating and target price of $49.00 on October 26.
  • Mylan has already slashed its EPS projections from $4.85–$5.15 to $4.70–$4.90 for 2016 to reflect changes in EpiPen patient access programs. It remains to be seen whether the company will slash its GAAP EPS to reflect the most recent settlement.
  • Raymond James upgraded Mylan shares from Market Perform to Strong Buy rating on October 10.

At last check, Mylan was up 5.31 percent at $39.06. The iShares NASDAQ Biotechnology Index (ETF) IBB 9.33% was up 9.37 percent at $286.14. The SPDR S&P Biotech (ETF) XBI 11.49% was up 11.4 percent at $64.38.

DateFirmActionFromTo
Oct 2016MizuhoInitiates Coverage OnBuy
Oct 2016Raymond JamesUpgradesMarket PerformStrong Buy
Sep 2016Leerink SwannMaintainsOutperform

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