) is set to report first quarter 2014 results on May 1 before
market opens. Last quarter, the company had delivered a positive
earnings surprise of 4.00%. Let's see how things are shaping up
for this announcement.
Factors at Play
We expect revenues at Mylan, which it reports through two
segments (Generics and Specialty), to be hurt by adverse foreign
currency movements in the first quarter of 2014.
The Specialty segment should continue to perform well driven by
strong sales of its flagship product, EpiPen auto-injector
(severe allergic reactions). Mylan and
) have an agreement for EpiPen, under which Pfizer manufactures
and Mylan markets the product. The EpiPen Auto-injector is the
best prescribed treatment for severe allergic reactions. Sales of
the Generics segment, the primary contributor to Mylan's
revenues, should be soft due to the adverse impact of foreign
currency movements, hurting the overall top line. Prudent cost
management will however aid the bottom line.
Our proven model does not conclusively show that Mylan is likely
to beat earnings this quarter. That is because a stock needs to
have both a positive Earnings ESP (Expected Surprise Prediction)
and a Zacks Rank of #1, 2 or 3 for this to happen. That is not
the case here as you will see below.
Zacks ESP: The Earnings ESP for Mylan is 0.00% since the Most
Accurate Estimate stands at 63 cents per share, in line with the
Zacks Consensus Estimate.
Zacks Rank: Mylan's Zacks Rank #3 (Hold) when combined with a
0.00% ESP makes surprise prediction difficult.
Stocks to Consider
Here are some companies you may want to consider as our model
shows that they have the right combination of elements − a
positive Zacks Earnings ESP and a Zacks Rank #1, #2 or #3
) has an Earnings ESP of +0.89% and holds a Zacks Rank #2 (Buy).
Allergan will be reporting first quarter earnings on May 7 before
Endo International plc
) has an Earnings ESP of +5.95% and holds a Zacks Rank #3. Endo
will be reporting first quarter earnings on May 1 before the
ALLERGAN INC (AGN): Free Stock Analysis
ENDO INTL PLC (ENDP): Free Stock Analysis
MYLAN INC (MYL): Free Stock Analysis Report
PFIZER INC (PFE): Free Stock Analysis Report
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