Mylan's (MYL – Analyst Report) fourth-quarter 2014 earnings (excluding special items) of $1.05 per share beat the Zacks Consensus Estimate by a penny. Earnings in the fourth quarter of 2014 increased 35% from the year-ago quarter. Earnings benefited from higher revenues and higher gross margins.
Mylan Inc. – Quarterly EPS | FindTheCompany
On a reported basis (including special items), fourth-quarter 2014 earnings increased 4% to 47 cents per share. Revenues climbed 15% to $2.08 billion, broadly in line with the Zacks Consensus Estimate. Mylan recorded year-over-year growth on the back of double-digit revenue growth in both the Specialty and Generics segments.
The company's full-year earnings were up 23% from the prior year to $3.56 per share, a penny above the Zacks Consensus Estimate. Revenues came in at $7.7 billion, increasing 12% and broadly in line with the Zacks Consensus Estimate.
Fourth Quarter in Details
Generics third-party net sales, derived from sales in North America, Europe and rest of the world, climbed 12% to $1.82 billion. Segmental third-party net sales grew 17% to $1 billion in North America. New product launches aided revenues.
Third-party net sales from the European market decreased 1% to $373.4 million due to unfavorable currency translations. Third party net sales from rest of the world rose 13% to $441 million. Segmental performance improved on the back of increased sales of its antiretroviral products in India. Performance in emerging markets and Brazil was also strong during the quarter.
Third-party net sales in the Specialty segment jumped 38% to $242.7 million. Specialty segment sales were boosted by the strong performance of its flagship product – EpiPen Auto-Injector – for severe allergic reactions. Sales of the product improved due to increased volume and favorable pricing.
Adjusted gross margin during the fourth quarter of 2014 expanded to 54% from 51% in the year-ago quarter on the back of strong sales of EpiPen Auto-Injector and new products.
2015 Outlook
Mylan expects adjusted earnings per share in the range of $4.00 to $4.30, representing an increase of 17%. The company expects revenues in the range of $9.7 billion to $10.1 billion, up 28% from 2014. The Generics segment is expected to see revenue growth of approximately 40% in 2015. The guidance assumes the launch of AB-rated generic Copaxone in the second half of 2015.
Specialty revenues are expected to be flat in 2015. The company expects to face generic competition for EpiPen Auto-Injector in the second half of 2015.
