MYL Earnings Momentum Propels Mylan Stock to a Buy

by Louis Navellier | March 4, 2014 8:00 am

Welcome to the Stock of the Day.

MYLAN185It’s no secret that I consider generic drugmakers to make up some of the biggest profit opportunities for investors. Like Mylan (MYL[1]), which just soared to an all-time high on strong fourth-quarter results.

Is there upside left for Mylan stock ? Find out today.

Company Overview

Mylan is a global generic pharmaceuticals company. With customers in more than 140 countries, Mylan has a portfolio of 1,300 separate products and a manufacturing capacity of more than 45 billion doses.

Outside of generics, Mylan also produces active pharmaceutical ingredients (APIs) and specialty pharmaceuticals, particularly those that treat respiratory diseases, psychiatric disorders and severe allergic reactions.

Earnings Buzz

For the fourth quarter Mylan reported net earnings of $180.23 million, or 45 cents per share, on $1.81 billion in total revenue. Compared with the year ago quarter this represents 11% bottom-line growth and 5% top-line growth. Adjusted earnings were 78 cents per share, which topped the 75 cents per share consensus EPS estimate by 4%. The company reported higher sales in its Generics and its Specialty businesses.

Future Outlook

Mylan has robust growth prospects thanks to its strong pipeline: The company currently has nearly 200 generics awaiting final approval for use in the U.S. On top of this, the company has been ramping up operations in the world’s fastest-growing economies.

Last year the company bought out Agila Specialties Private Ltd.–an Indian marketer of generic injectable products–for $1.6 billion. Further, Mylan has partnered with India’s Biocon to develop five products for that region, including Hertraz Herceptin, the first breast cancer drug of its kind.

Current Ratings

Before you buy any stock, you should always run it through my free Portfolio Grader ratings system. This Conservative stock has been at a buy for the past 12 months running. And with the latest results I don’t expect that to change anytime soon. MYL receives an A for its Quantitative Grade, and while it currently receives a C for its Fundamental Grade I expect this to firm up once we plug in the latest earnings data.

Bottom Line: As of this posting I consider Mylan stock an A-rated Strong Buy.

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