What to Expect From Mylan Earnings

Mylan N.V. (NASDAQ: MYL) is scheduled to report its third-quarter financial results after the markets close on Wednesday. The consensus estimates from Thomson Reuters are $1.46 in earnings per share (EPS) and $3.12 billion in revenue. In the same period of last year, Mylan posted EPS of $1.43 and $2.71 billion in revenue.

Within the past month, Mylan reached an agreement with the U.S. Department of Justice to pay $465 million to resolve questions about the classification of it EpiPen auto-injector products for purposes of the Medicaid drug rebate program.

At that time, the company has reduced its full fiscal 2016 adjusted earnings per share (EPS) guidance from a prior range of $4.85 to $5.15 to a new range of $4.70 to $4.90. Mylan attributed the majority of the change to “previously announced changes in EpiPen Auto-Injector access programs and the upcoming launch of the generic to EpiPen Auto-Injector.”

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Mylan also said the settlement terms “provide for resolution of all potential rebate liability claims by federal and state governments as to whether the product should have been classified as an innovator drug for [Centers for Medicaid and Medicare Services] CMS purposes and subject to a higher rebate formula.”

A few analysts weighed in on Mylan ahead of the earnings report:

• Mizuho has a Buy rating with a $49 price target.
• JPMorgan has a Buy rating with a $52 price target.
• BTIG Research reiterated a Buy rating with a $55 price target.
• RBC Capital Markets reiterated a Sector Perform rating with a $48 price target.
• Leerink Swann has a Buy rating with a $45 price target.
• Wells Fargo has a Hold rating with a $44 price target.
• Argus has a Buy rating with a $55 price target.

Excluding Wednesday’s post-election move, Mylan has vastly underperformed the broad markets, with the stock down 31% year to date.

Shares of Mylan were trading up 5% at $39.07 on Wednesday, with a consensus analyst price target of $52.53 and a 52-week trading range of $33.60 to $55.51.

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