Should I buy Viatris shares after a strong Q3 report? | Invezz

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Viatris Inc. (NASDAQ: VTRS) shares have advanced more than 5% after the company reported better than expected third-quarter results on Monday.

Viatris’s business continued to grow throughout the third fiscal quarter, and the company’s management raised financial guidance for the full fiscal year during the third-quarter earnings call.

Viatris increased its financial guidance


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Viatris reported better than expected third-quarter results this Monday; total revenue has increased by 53.2% Y/Y to $4.52 billion, which was more than expected, while the GAAP EPS was $0.26. Adjusted EBITDA for the third quarter of 2021 was $1.7 billion, and its branded business, primarily driven by Viagra and Lipitor continues to perform strongly.

The momentum the company achieved during the third quarter reflects the fact that Viatris is a global leader in generic drugs, which are expected to eventually make up about 90% of all global drug volumes.

The company’s stability in a variety of market conditions has revealed its true staying power, while multiple fast-growing drugs in Viatris’s portfolio should continue to drive revenue growth.

Viatris increased its financial guidance for the full fiscal year during the third-quarter earnings call, and the consistent strong execution should drive healthy growth in the last quarter of 2021 year.

The company’s management expects revenue between $17.7 billion -$17.9 billion, while the adjusted EBITDA should be in the range of $6.30 billion to $6.50 billion. Michael Goettler, CEO of Viatris, added:

Based on our strong performance to date, we are again raising our financial guidance across total revenue, adjusted EBITDA, and free cash flow. We also remain focused on strengthening our balance sheet, returning capital to shareholders in the form of a dividend, and building a strong foundation for the future.

Fundamentally looking, Viatris trades at less than three times TTM EBITDA, and with a market capitalization of $16.6 billion, shares of this company are not expensive.

Viatris’s balance sheet remains stable, the current dividend yield is around 1.5%, and shares of this company could provide strong returns for long-term investors.

Bulls control the price action

Data source: tradingview.com

Viatris shares have advanced more than 5% since the beginning of November 2021, and according to technical analysis, the bulls remain in control of the price action for now. Rising above $15 supports the positive trend, and the next price target could be around $16.

If the price falls in the upcoming period, every price in a range from $10 to $13 could be a very good opportunity to invest in Viatris stock.

Summary

Viatris reported better than expected third-quarter results this week, and the company’s management raised financial guidance for the full fiscal year during the third-quarter earnings call. The momentum the company achieved during the third quarter reflects the fact that Viatris is a global leader in generic drugs, and shares of this company could provide strong returns for long-term investors.

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