Mylan (MYL) Misses Q3 EPS by 10c; Increases Low End of Guidance

Mylan (NASDAQ: MYL) reported Q3 EPS of $1.10, $0.10 worse than the analyst estimate of $1.20. Revenue for the quarter came in at $2.99 billion versus the consensus estimate of $3.1 billion.

Mylan is increasing the low end of our adjusted EPS guidance range, where we now expect to generate between $4.45 and $4.70 per share.

Mylan CEO Heather Bresch commented, "Our third quarter results, which included adjusted EPS of $1.10, were especially strong considering the ongoing challenges we experienced in the U.S., including accelerated deceleration of EpiPen sales - both from our launch of an authorized generic as well as the contraction of the overall epinephrine auto-injector market.

"Our third quarter results also continue to show the durability of our resilient global platform, where we now believe that approximately 75% of our more-than-$2 billion adjusted operating cash flows stems from more predictable, recurring revenues across all markets around the world.

"As impressive, we recently received approval from the U.S. Food and Drug Administration of our Glatiramer Acetate product. Being first to market with the 40-mg strength - as well as offering the 20-mg strength - is a milestone because it underscores our scientific, regulatory and commercialization capabilities for this very complex product; it also paves the path for the many other complex products we have in our pipeline.

"Given that, and the stability of our global platform, we see a strong finish ahead for the year. As a result, we are increasing the low end of our adjusted EPS guidance range, where we now expect to generate between $4.45 and $4.70 per share.

"We also see sustainable momentum globally as we head into the new year, which is why we remain confident in our 2018 target of at least $5.40 in adjusted EPS."

Mylan President Rajiv Malik said, "We continue to see the benefits of our geographic, product, channel and pipeline diversification as well as the integration of Mylan.

Malik continued: "We also continue to see the strength of our science, especially as it relates to complex products, and we now believe Mylan is well-positioned to deliver on future opportunities. The submission of Insulin Glargine in the U.S., which currently is under active review with FDA; our continued work with FDA on generic Advair; and our progress with several of our biosimilar programs are great opportunities for us to bring additional value to our shareholders as we continue to execute on our promising complex product pipeline."

Mylan CFO Ken Parks added, "We are pleased with our continued strong adjusted free cash flow generation of $1.9 billion for the first nine months of 2017. This strength reflects our stable and durable cash flow profile and provides us with the opportunity to continue to reduce debt levels, while at the same time allowing for financial flexibility as we continue to execute on our business strategy and maintain our commitment to an investment grade credit rating."

For earnings history and earnings-related data on Mylan (MYL) click here.

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