) will be reporting third quarter 2013 results on Oct 31, before
the opening bell. Last quarter, the company posted a positive
surprise of 1.49%. We expect the company to deliver a positive
earnings surprise in the third quarter of 2013 as well.
Factors at Play for Q3
Mylan has delivered positive earnings surprises in three of the
last four quarters with an average beat of 3.61%. The strong
performance of the generics segment has been driving growth at
Mylan. The segment is expected to perform well in the third
quarter as well. Moreover, sales of EpiPen auto-injector for
severe allergic reactions are expected to be strong in the third
quarter of 2013. Impressive sales of the product, which is a part
of the Mylan Specialty division, could also lead to an earnings
beat in the third quarter of 2013.
Our proven model shows that Mylan is likely to beat earnings
because it has the right combination of two key ingredients.
Positive Zacks ESP
(Expected Surprise Prediction), which represents the difference
between the Most Accurate estimate and the Zacks Consensus
Estimate, is +1.28%. This is a meaningful and leading indicator
of a likely positive earnings surprise for the shares.
Zacks Rank #3 (Hold)
: Note that stocks with a Zacks Rank #1 (Strong Buy), 2 (Buy) and
3 have a significantly higher chance of beating earnings
estimates. We caution against stocks with Zacks Ranks #4 and 5
(Sell-rated stocks) going into the earnings announcement,
especially when the company is seeing negative estimate revision
The combination of Mylan's Zacks Rank #3 and an ESP of +1.28%
make us confident of an earnings beat on Oct 31.
Other Stocks to Consider
Mylan is not the only company looking up this earnings season. We
also see likely earnings beat coming from these companies:
Regeneron Pharmaceuticals, Inc.
) has Earnings ESP of +10.10% and carries a Zacks Rank #3.
Endo Health Solutions Inc.
) has Earnings ESP of +0.89% and carries a Zacks Rank #3.
) has Earnings ESP of +2.88% and carries a Zacks Rank #3.
ENDO PHARMACEUT (ENDP): Free Stock Analysis
MYLAN INC (MYL): Free Stock Analysis Report
PERRIGO COMPANY (PRGO): Free Stock Analysis
REGENERON PHARM (REGN): Free Stock Analysis
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