) is set to report fourth quarter and full year 2013 results on
Feb 27 before market opens. Last quarter, the company had
delivered a positive earnings surprise of 5.13%. 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 fourth quarter of 2013.
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
(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.
: The Earnings ESP for Mylan is 0.00% since the Most Accurate
Estimate stands at 75 cents per share, in line with the Zacks
: Mylan's Zacks Rank #3 (Hold) when combined with a 0.00% ESP
makes surprise prediction difficult.
Stocks to Consider
Here are some companies in the medical sector you may want to
consider as our model shows that they have the right combination
) has an Earnings ESP of +54.55% and holds a Zacks Rank #2 (Buy).
Medivation will be reporting fourth quarter earnings on Feb 27.
Endo Health Solutions
) has an Earnings ESP of +3.19% and holds a Zacks Rank #3. Endo
will be reporting fourth quarter earnings on Feb 28.
ENDO PHARMACEUT (ENDP): Free Stock Analysis
MEDIVATION INC (MDVN): Free Stock Analysis
MYLAN INC (MYL): Free Stock Analysis Report
PFIZER INC (PFE): Free Stock Analysis Report
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