Healthcare company Viatris beats Q2 revenue expectations, backs FY forecast
Overview
Viatris Q2 2025 revenue beats expectations despite 6% decline yr/yr
Adjusted EPS for Q2 2025 beats analyst expectations, per LSEG data
Company returned over $630 mln to shareholders, including $350 mln in buybacks
Outlook
Viatris expects 2025 total revenues between $13.5 bln and $14.0 bln
Company sees 2025 adjusted EPS between $2.16 and $2.30
Viatris estimates 2025 free cash flow between $1.8 bln and $2.2 bln
Company expects to be in top half of revenue and EPS guidance ranges
Result Drivers
INDORE IMPACT - Negative financial impact from FDA warning letter and import alert on Indore facility affected revenue
BRANDS PERFORMANCE - Strong sales in Greater China and Emerging Markets contributed positively to results
GENERIC SALES - Expected decline due to Indore Impact and competition, offset by growth in specific products and regions
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Beat | $3.58 bln | $3.47 bln (5 Analysts) |
Q2 Adjusted EPS | Beat | $0.62 | $0.56 (5 Analysts) |
Q2 Net Income | -$4.60 mln | ||
Q2 Adjusted EBITDA | Beat | $1.08 bln | $1.06 bln (2 Analysts) |
Q2 Gross Margin | 37.2% | ||
Q2 Adjusted Gross Margin | 56.6% | ||
Q2 Free Cash Flow | $166.80 mln |
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 6 "hold" and 2 "sell" or "strong sell"
The average consensus recommendation for the pharmaceuticals peer group is "buy."
Wall Street's median 12-month price target for Viatris Inc is $10.50, about 16.7% above its August 6 closing price of $8.75
The stock recently traded at 4 times the next 12-month earnings vs. a P/E of 4 three months ago
Press Release:
