Mylan earnings rise, but dollar drags on revenue
(Reuters) - Generic drugmaker Mylan Inc reported a quarterly profit that edged past Wall Street expectations but said weakness of the Indian and Japanese currencies against the dollar would put 2013 revenue at the low end of its forecast range of $7 billion to $7.4 billion.
Mylan also reiterated a long-term forecast calling for adjusted earnings of at least $6.00 per share in 2018, and provided a 2014 forecast above current Wall Street estimates.
"We believe Mylan is a business capable of generating low double digit bottom line growth over the next several years, aided by a mix of bolt-on acquisitions and share repurchases," J.P. Morgan analyst Chris Schott said in a research note.
Revenue in the second quarter was $1.7 billion, barely changed from $1.69 billion a year earlier, the company reported on Thursday. That fell short of analysts' average estimate of $1.73 billion, according to Thomson Reuters I/B/E/S.
The stronger dollar brought revenue down by about 1 percent, the company said.
Net income rose to $178 million, or 46 cents per share, from $139 million, or 33 cents per share, a year earlier.
On an adjusted basis, Mylan earned 68 cents a share, exceeding average analysts' expectations by a penny.
Mylan left its full-year earnings view unchanged at $2.75 to $2.95 per share and forecast 2014 earning per share to grow 19 percent over the midpoint of the 2013 range. That implies earnings next year of about $3.40 per share, while Wall Street is looking for $3.25.
Mylan expects revenue to grow 12 percent over 2013 levels.
The company said sales growth in Europe, where pressure to use cheap generic medicines is intense, continued to be strong, and reported double-digit growth in Asia Pacific.
Mylan said it expects its specialty drugs business to grow close to 20 percent for the year.
Mylan shares were up 13 cents, or 0.4 percent at $33.68 in midday trading on the Nasdaq. Its share are up about 23 percent so far this year.