Mylan Q1 Profit Up 31%, But Results Miss View; Reaffirms FY18 Outlook

(RTTNews) - Drugmaker Mylan N.V. (MYL) on Wednesday reported a 31 percent increase in profit for the first quarter from last year as lower expenses and a tax benefit helped offset a slight decline in revenues.

However, both revenue and adjusted earnings missed analysts' expectations. Looking ahead, the company reaffirmed its financial outlook for fiscal 2018. Mylan's shares are down more than 2 percent in pre-market activity.

The company's first-quarter net income rose to $87.1 million or $0.17 per share from $66.4 million or $0.12 per share in the year-ago period.

In the latest quarter, the company recognized an income tax benefit of $76.6 million, compared to an income tax provision of $5.2 million for the prior-year period.

Adjusted earnings for the quarter were $0.96 per share, compared $0.93 per share in the year-ago period. On average, nineteen analysts polled by Thomson Reuters expected earnings of $0.97 per share for the quarter. Analysts' estimates typically exclude special items.

Total revenue for the quarter declined 1 percent to $2.68 billion from $2.72 billion in the prior-year quarter. Analysts had a consensus revenue estimate of $2.75 billion.

Net sales for the quarter also decreased 1 percent to $2.65 billion, while other revenues rose 6 percent to $34.1 million.

Net sales from existing products on a constant currency basis decreased $286.2 million primarily as a result of lower volumes and pricing, partially offset by new product introductions of $102.6 million. Sales were also negatively impacted by the adoption of new accounting standards of a net impact of about $17.7 million.

North America segment net sales fell 19 percent to $985.3 million, primarily due to the combined impact of the loss of exclusivity on the olmesartan products, lower sales of branded products, including the EpiPen Auto-Injector, and the divestiture of certain contract manufacturing assets.

Total operating expenses decreased 3 percent from the year-ago period to $828.6 million.

Looking ahead to fiscal 2018, Mylan reaffirmed its forecast for adjusted earnings of $5.20 to $5.60 per share and total revenues in a range of $11.75 billion to $13.25 billion. The Street expects earnings of $5.37 per share for the year on revenues of $12.43 billion.