Mylan Q2 Profit Down, Misses View; Trims Annual Forecast

(RTTNews) - Drugmaker Mylan, Inc. (MYL), which recently agreed to buy Abbott Laboratories' (ABT) branded generics pharmaceuticals business, reported Thursday that its second-quarter profit plunged from last year, despite higher revenues. Adjusted earnings per share missed analysts' estimates. Citing delays in approvals of key products by the U.S. Food and Drug Administration, the company trimmed the higher end of its earnings and revenue forecast for fiscal 2014.

Second-quarter net earnings attributable to the shareholders decreased 29.5 percent to $125.2 million from $177.7 million a year ago. Earnings per share fell to $0.32 from $0.46 last year.

Adjusted net earnings attributable was $273.3 million or $0.69 per share, compared to $261.6 million or $0.68 per share in the prior year.

On average, 16 analysts polled by Thomson Reuters expected earnings of $0.70 per share for the quarter. Analysts' estimates typically exclude special items.

Total revenues of $1.84 billion increased 8 percent from last year's $1.70 billion, with positive growth across all regions and businesses. Analysts expected revenues of $1.88 billion.

Net sales were $1.82 billion, compared to $1.69 billion a year ago.

Looking ahead, Mylan expects third quarter adjusted earnings per share in the range of $0.90 to $0.95. Given the anticipated launches of key products, the fourth quarter is expected to be the strongest quarter of the year. Analysts expect earnings of $1.03 per share.

For fiscal 2014, the company now expects adjusted net income of $1.265 billion to $1.370 billion or $3.25 to $3.45 per share, compared to previous estimate of $1.265 billion to $1.460 billion or $3.25 to $3.60 per share.

Total revenue is now expected to be $7.80 billion to $8.00 billion, compared to previous estimate of $7.80 billion to $8.20 billion.

Analysts expect earnings of $3.37 per share on revenues of $7.77 billion for the year.

The guidance ranges include the fourth quarter launches of generic Copaxone and generic Celebrex.

The company also reaffirmed opportunity to accelerate target of at least $6.00 in adjusted earnings per share in 2018.