Viatris Q1 Earnings Release: What's in Store for the Stock?

Viatris VTRS, a global healthcare company, is scheduled to report first-quarter 2025 results on May 8, 2025.

The Zacks Consensus Estimate for revenues is pegged at $3.24 billion, while the same for earnings is pinned at $0.50 per share. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

Factors to Consider

The company reports under four segments — Developed Markets, Emerging Markets, Japan, Australia and New Zealand (JANZ), and Greater China.

Growth in Developed Markets, driven by strong new product performance and other generics, is likely to have boosted the top line.

Growth in Europe is anticipated to have been driven by contributions from new products and strong generic portfolios. The thrombosis portfolio and key brands must have also driven growth from this geography. Volume growth in key markets, including Italy and France, and strong generic performance have also likely boosted sales.

However, revenues from North America have likely been under pressure due to inspections in the manufacturing facility in Indore, India, and expected competition in the generic business.

The Zacks Consensus Estimate for revenues from Developed Markets is pinned at $1.9 billion.

Emerging Markets have likely witnessed growth on the back of the expansion of their cardiovascular portfolio in certain Latin American countries, as well as expansion in key markets such as Turkey, India, Korea, Brazil and emerging Asia, and volume growth in the overall base portfolio. The Zacks Consensus Estimate for revenues from this geography is pegged at $480 million.

Sales in JANZ are likely to have been adversely impacted by government-driven price regulations in Japan and Australia, as well as by a change in Japan's reimbursement for off-patent brands that accelerated generic conversion. The Zacks Consensus Estimate for revenues from the JANZ markets is pinned at $309 million.

Sales in Greater China might have seen an increase due to continued patient demand for a portfolio of iconic brands addressing chronic diseases that are more and more prevalent in this country’s growing aging population.

The Zacks Consensus Estimate for revenues from this geography is pegged at $553 million.

Viatris also reports revenues under two divisions (in terms of product category) — brands and generics.

Brand business makes up the majority of the company’s portfolio. Brand performance is likely to have benefited from the expansion of its cardiovascular portfolio in certain Latin American countries and strong growth in Europe and Greater China.

Operating expenses might have risen during the quarter due to SG&A investments in new product launches and progress in key R&D programs.

VTRS’ Share Price Performance

Viatris’ shares have lost 31.2% in the past year compared with the industry’s decline of 1%.

VTRS’ Mixed Earnings Surprise History

The company’s earnings beat estimates in two of the trailing four quarters and missed in the other two, delivering an average surprise of 1.26%. In the last reported quarter, VTRS missed on earnings by 5.26%.

What Our Model Predicts for Viatris

Our proven model does not conclusively predict an earnings beat for Viatris this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is not the case here, as you will see below.

Earnings ESP: VTRS has an Earnings ESP of +3.31% as the Zacks Consensus Estimate is pegged at 50 cents and the Most Accurate Estimate is pinned at 52 cents. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.

Zacks Rank: The company currently carries a Zacks Rank #4 (Sell).  

Stocks to Consider

Here are some drug/biotech stocks that have the right combination of elements to beat on earnings this time around.

ANI Pharmaceutcials, Inc. ANIP has an Earnings ESP of +0.86% and a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

ANIP beat on earnings in each of the trailing four quarters, delivering an average surprise of 17.32%. ANIP is scheduled to report first-quarter results on May 9.

Vertex Pharmaceuticals, Inc. VRTX has an Earnings ESP of +0.4% and a Zacks Rank #3 at present.

VRTX beat on earnings in two of the trailing four quarters and missed in the other two, delivering an average surprise of 2.58%. VRTX is scheduled to report first-quarter results on May 5.

Denali Therapeutics DNLI has an Earnings ESP of +4.87% and a Zacks Rank #3 at present.

DNLI beat on earnings in two of the trailing four quarters and missed the mark on the other two occasions, delivering an average surprise of 6.51%.



 

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research