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With a market cap of $9.1 billion, Viatris Inc. (VTRS) is a global healthcare company with a portfolio of over a thousand approved molecules, including brands like EpiPen, Lipitor, and Viagra, and biosimilars such as pegfilgrastim, trastuzumab, and adalimumab. Operating across Developed Markets, Greater China, JANZ, and Emerging Markets, it offers medicines across major therapeutic areas and partners with Mapi Pharma, Revance Therapeutics, and Theravance Biopharma.
The Canonsburg, Pennsylvania-based company is expected to release its fiscal Q1 2025 earnings results before the market opens on Thursday, May 8. Ahead of this event, analysts expect VTRS to report an adjusted EPS of $0.52, down 22.4% from $0.67 in the prior year's quarter. It has surpassed Wall Street's bottom-line estimates in two of the past four quarters while missing on two occasions.
For fiscal 2025, analysts forecast the generic drugmaker to post adjusted EPS of $2.24, reflecting a 15.5% decrease from $2.65 in fiscal 2024. However, adjusted EPS is projected to grow 8% year-over-year to $2.42 in fiscal 2026.
VTRS has underperformed the broader markets over the past 52 weeks, with shares down 29.1%, compared to the S&P 500 Index's ($SPX) 9.4% gain and the Health Care Select Sector SPDR Fund's (XLV) 1.3% dip over the same period.
Shares of Viatris dropped 15.2% on Feb. 27 after the company reported Q4 2024 adjusted EPS of $0.54 and total revenue of $3.5 billion, missing the estimates. The dip was further exacerbated by an FDA import alert on its Indore facility, expected to reduce 2025 revenue by $500 million and EBITDA by $385 million, along with cautious guidance for 2025 revenue between $13.5 billion and $14 billion.
Analysts' consensus rating on Viatris stock is cautious, with a "Hold" rating overall. Out of seven analysts covering the stock, opinions include one "Strong Buy,” four "Holds,” one "Moderate Sell," and one "Strong Sell.” The average analyst price target for VTRS is $11.32, suggesting a potential upside of 39.2% from current levels.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
