VTRS Earnings Prediction
The chart below shows how VTRS performed 10 days before and after its earnings report, based on data from the past quarters. Typically, VTRS sees a -1.81% change in stock price 10 days leading up to the earnings, and a +0.21% change 10 days following the report. On the earnings day itself, the stock moves by +1.01%. This data can give you a slight idea of what to expect for the next quarter's release.
VTRS Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
3.53B
-8.06%
-5.95%
Gross Margin
39.54%
-8.09%
-7.64%
Operating Margin
8.75%
394.61%
-39.15%
Net Margin
-14.64%
-26.62%
-678.66%
EPS
-0.43
-32.81%
-637.50%
No Data Available
VTRS Earnings Analysis
Viatris Inc Corporation (VTRS.O) Earnings Conference Call
Positive
Product Revenue Growth: 2024 was an important year for Viatris with growth in base business and new product revenues reaching $582 million.
2024 Financial Performance Summary: Total revenues for 2024 were approximately $14.7 billion, with adjusted EBIT of approximately $4.7 billion and adjusted EPS of $2.65 per share.
Strong Cash Generation: Free cash flow was approximately $2.6 billion, excluding divestiture-related taxes and transaction costs, indicating strong cash generation.
Debt Retirement Achievement: The company retired approximately $3.7 billion of debt, achieving its long-term gross leverage target.
Innovative Product Expansion: Viatris expanded its innovative portfolio with three new products: Selatogrel, Cenerimod, and Sotagliflozin, contributing to future growth.
Phase 3 Clinical Pipeline: The company has 10 unique molecules in Phase 3 clinical development, with six Phase 3 readouts expected in 2025, indicating a robust pipeline.
Share Repurchase Commitment: Viatris is targeting $500 million to $650 million in share repurchases in 2025, demonstrating commitment to returning capital to shareholders.
New Product Revenue Forecast: The company expects to deliver $450 million to $550 million in new product revenues in 2025, building on the success of 2024.
European Growth Prospects: In 2025, Viatris anticipates growth in Europe driven by new product launches and strong performance in key markets like Italy and France.
Emerging Markets Growth: Emerging markets are expected to grow year-over-year, driven by expansion of the cardiovascular portfolio in Latin America and other key markets.
Innovative Product Commercialization: The company is focused on enhancing its innovative product commercialization capabilities and developing global strategies for novel pipeline assets.
Negative
FDA Warning Impact on Revenue: The FDA issued a warning letter and import alert for the Indore facility, affecting 11 products, which is expected to have a significant negative impact on revenues.
Revenue and EBITDA Impact: The estimated negative impact on 2025 total revenues due to the Indore facility issues is approximately $500 million, with an adjusted EBITDA impact of about $385 million.
Revenue Decline Forecast: The company anticipates a decline in total revenues of approximately 1% in 2025, primarily due to the Indore facility's impact.
Lenalidomide Generic Competition: Lenalidomide, a key product, will face significant additional generic competition in early 2026, which could further affect revenues.
Gross Margin Impact Factors: The company expects gross margins to be impacted by Indore, normal base business price erosion, and increased product supply costs.
Tax Rate Increase Forecast: The effective tax rate is expected to increase by 150 basis points in 2025 due to anticipated impacts from Pillar 2.
North American Market Decline: The North American market is expected to decline year-over-year, driven by the Indore impact and expected competition on certain generics.
VTRS FAQs
How does VTRS typically perform around its earnings report dates?
Is Viatris Inc (VTRS) Q4 2024 Earnings Call Summary positive or negative?
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VTRS Earning Call Sentiment
Viatris Inc. (VTRS) Q4 2024 Earnings Call Transcript
VTRS.O
1.06%Positive
The earnings call summary presents a mixed picture: strong financial metrics, debt repayment, and shareholder returns are positive, but weak guidance, Indore facility issues, and unclear management responses in the Q&A section are concerning. The impact of Indore on margins and revenues, along with the cautious buyback strategy, tempers the positive aspects, resulting in a neutral sentiment.
