Viatris Earnings Forecast Reflects Yearly Decline
Wall Street experts predict that Viatris (VTRS) will disclose quarterly earnings of $0.57 per share in its forthcoming report, indicating a decrease of 6.6% compared to the previous year. Revenue is expected to total $3.6 billion, marking a 6.3% decline from the same quarter last year. Notably, there have been no changes in the consensus earnings per share (EPS) estimate over the last month, suggesting that analysts have not adjusted their initial earnings expectations during this timeframe.
Importance of Earnings Revisions for Investor Sentiment
Before a company’s earnings announcement, it’s crucial to consider any adjustments to earnings forecasts. These revisions act as significant indicators for predicting how investors may react to the stock. Research has consistently shown a strong correlation between the trends in earnings estimate revisions and a stock’s performance in the short term. While investors typically rely on consensus earnings and revenue projections to evaluate quarterly performance, examining analysts’ forecasts for specific key metrics can provide deeper insights.
Analysts’ Estimates on Viatris’ Key Metrics
With this understanding, let’s explore the average projections for various metrics of Viatris that analysts closely follow. The average estimate for ‘Total Net Sales’ stands at $3.59 billion, reflecting a year-over-year decrease of 6.2%. For ‘Other revenues,’ analysts expect a total of $11.47 million, which indicates a slight increase of 0.6% compared to the previous year. The forecast for ‘Net Sales- JANZ’ is set at $366.35 million, indicating a decline of 1.6% from the same quarter last year.
Further Breakdown of Sales Forecasts
Analysts collectively estimate that ‘Net Sales- Emerging Markets’ will be approximately $538.93 million, projecting a significant drop of 13% from the prior year. Meanwhile, the consensus for ‘Net Sales- Developed Markets- Brands’ is anticipated to be around $1.21 billion, showing a decrease of 7.7% year over year. The estimate for ‘Net Sales- JANZ- Brands’ is $198.33 million, reflecting a marginal decline of 0.6% from last year. Furthermore, analysts predict that ‘Net Sales- JANZ- Generics’ will reach $168.03 million, indicating a notable year-over-year decrease of 13.1%.
Regional Sales Projections for Viatris
Analysts believe that ‘Net Sales- Emerging Markets- Brands’ will amount to $401.94 million, which suggests a year-over-year increase of 7.3%. For ‘Net Sales- Emerging Markets- Generics,’ the estimate is $171.99 million, projecting a sharp decline of 29.7%. The forecast for ‘Net Sales- Greater China’ stands at $553.04 million, indicating a year-over-year increase of 7.3%. According to analysts, ‘Net Sales- Developed Markets’ are expected to reach $2.17 billion, which suggests a decline of 6.5% year over year. Additionally, ‘Net Sales- Developed Markets- Generics’ is projected to be around $1.06 billion, reflecting a significant decrease of 26.1% compared to the prior year.
Market Performance and Analyst Ratings
In terms of market performance, shares of Viatris have seen a modest increase of 0.5% over the past month, contrasting with the S&P 500 composite’s decline of 0.5%. Currently rated as Zacks Rank #4 (Sell), VTRS is expected to underperform the broader market in the near term.
No coins selected
