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Viatris Poised to Report Q2 Earnings: What's in Store for the Stock?

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Key Takeaways

  • {\"0\":\"Viatris will report Q2 earnings on Aug. 7, with consensus estimate of $3.50B in sales and $0.56 in EPS.\",\"1\":\"Brand growth in Europe, China, and Latin America likely offset pressure on generics and JANZ markets.\",\"2\":\"North America sales might have been impacted by Indore facility issues and expected generic competition.\"}

Viatris ((VTRS - Free Report) ), a global healthcare company, is scheduled to report second-quarter 2025 results on Aug. 7, 2025, before the bell.

The Zacks Consensus Estimate for revenues is pegged at $3.50 billion, while the same for earnings is pinned at $0.56 per share.

Factors to Consider for VTRS Q2 Earnings 

The company reports under four segments on the basis of geography — Developed Markets; Emerging Markets; Japan, Australia and New Zealand (“JANZ”); and Greater China.

Growth in Developed Markets, driven by brands such as Creon, Brufen, and its Thrombosis portfolio, has likely boosted sales from this segment and offset the decline in generics.

While sales from Europe have likely maintained growth, the same from North America have possibly been under pressure due to inspections in the manufacturing facility in Indore, India, and expected competition in the generic business.

The Zacks Consensus Estimate for revenues from Developed Markets is pinned at $2.1 billion.

Sales from Emerging Markets were under pressure in the first quarter due to the impact of the Indore facility and customer buying patterns on the generics business. Nonetheless, growth in brands across the cardiovascular portfolio in certain Latin American countries and continued strengths in the Middle East and North America and Eurasia regions have likely offset this impact in the second quarter.

The Zacks Consensus Estimate for revenues from this geography is pegged at $542 million.

Sales in JANZ are likely to have been adversely impacted by government-driven price regulations in Japan and Australia, as well as by a change in Japan's reimbursement for off-patent brands that accelerated generic conversion. The Zacks Consensus Estimate for revenues from the JANZ markets is pinned at $310 million.

Sales in Greater China might have seen an increase due to the company’s diversified model across e-commerce, retail, and private hospitals.

The Zacks Consensus Estimate for revenues from this geography is pegged at $546 million.

Viatris also reports revenues under two divisions (in terms of product category) — brands and generics.

Brand business comprises the majority of the company’s portfolio. Brand performance is likely to have benefited from the expansion of its cardiovascular portfolio in certain Latin American countries and strong growth in Europe and Greater China.

Operating expenses might have risen during the quarter due to SG&A investments in new product launches and progress in key R&D programs.

VTRS’ Share Price Performance

Viatris’ shares have lost 29.3% in the past year compared with the industry’s decline of 8.4%.

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Image Source: Zacks Investment Research

VTRS’ Mixed Earnings Surprise History

The company’s earnings beat estimates in three of the trailing four quarters and missed in the remaining one, delivering an average surprise of 2.14%. In the last reported quarter, VTRS beat on earnings by 2.04%.

Viatris Inc. Price, Consensus and EPS Surprise

Viatris Inc. Price, Consensus and EPS Surprise

Viatris Inc. price-consensus-eps-surprise-chart | Viatris Inc. Quote

What Our Model Predicts for Viatris

Our proven model does not conclusively predict an earnings beat for Viatris this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is not the case here, as you will see below.

Earnings ESP: VTRS has an Earnings ESP of 0.0% as both the Zacks Consensus Estimate and the Most Accurate Estimate are pinned at 56 cents. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.

Zacks Rank: The company currently carries a Zacks Rank #3.

Stocks to Consider

Here are some drug/biotech stocks that have the right combination of elements to beat on earnings this time around.

Amneal Pharmaceuticals ((AMRX - Free Report) ) has an Earnings ESP of +13.21% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Amneal beat on earnings in three of the trailing four quarters and missed in the remaining one, delivering an average surprise of 14.34%. AMRX is scheduled to report second-quarter results on Aug. 5.

Exact Sciences ((EXAS - Free Report) ) has an Earnings ESP of +475.00% and a Zacks Rank #2 at present.

Shares of EXAS have lost 16.4% year to date. It beat on earnings in three of the trailing four quarters and missed in the other one, delivering an average surprise of 48.79%. Exact Sciences is expected to report second-quarter results on Aug. 6, after market close.

Pfizer ((PFE - Free Report) ) has an Earnings ESP of +1.43% and a Zacks Rank #3 at present. The company is scheduled to release second-quarter results on Aug. 5. Higher sales of Pfizer’s products like Vyndaqel family, Padcev, Lorbrena and Nurtec are expected to have offset softer sales of some key products like Prevnar, Xeljanz, Eliquis and Ibrance in the second quarter.

PFE beat on earnings in each of the trailing four quarters, delivering an average surprise of 43.49%.


 

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