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Viatris Inc. (VTRS), headquartered in Canonsburg, Pennsylvania, is a leading global healthcare company dedicated to empowering people worldwide to live healthier at every stage of life. With a market cap of $13.3 billion, Viatris offers a diverse portfolio of medicines, including branded, generic, and over-the-counter products and biosimilars. The company is set to release its Q4 earnings on Wednesday, Feb. 26.
Ahead of the event, analysts anticipated Viatris to report a profit of $0.57 per share, down 6.6% from $0.61 per share in the same quarter last year. The company has surpassed Wall Street's earnings projections in two of the past four quarters while missing on two other occasions.
The company delivered an EPS of $0.75 in the last reported quarter, surpassing the consensus estimate by 10.3%. Viatris' earnings beat was driven by effective cost management.
For fiscal 2024, analysts anticipate Viatris to report an EPS of $2.68, down 8.5% from $2.93 in fiscal 2023.
Viatris' shares have declined 5.4% over the past 52 weeks, significantly underperforming the broader S&P 500 Index's ($SPX) 25.8% gains and the Health Care Select Sector SPDR Fund's (XLV) 2.9% rise over the same time frame.
Viatris has lagged behind the broader market and its peers, impacted by declining revenues, unfavorable earnings estimate revisions, and challenges in the generic drug sector. However, on Nov. 7, its shares jumped 13.5% after the company reported Q3 earnings results. Total revenues came in at $3.75 billion, a 4.8% year-over-year decline but surpassing Wall Street’s estimate of $3.68 billion. The company also reaffirmed its 2024 full-year outlook, projecting approximately 2% revenue growth on a divestiture-adjusted operational basis.
Analysts' consensus rating on Viatris stock is cautious, with a "Hold" overall rating. Out of seven analysts covering the stock, one advises a "Strong Buy," four suggest a "Hold," one recommends a "Moderate Sell," and one has a "Strong Sell" rating.
The average analyst price target for Viatris is $13.17, indicating a potential upside of 18.2% from the current price levels.
