Viatris Q4 Earnings and Revenues Miss Estimates, Stock Plunges

Core Insights - Viatris Inc. (VTRS) reported fourth-quarter 2024 adjusted earnings of 54 cents per share, missing the Zacks Consensus Estimate of 57 cents, and down from 62 cents in the same quarter last year [1][9] - Total revenues for the quarter were $3.53 billion, a decline of 8.5% year-over-year, and also below the Zacks Consensus Estimate of$ 3.6 billion [1][2] - The company’s 2025 revenue guidance is projected between $13.5 billion and$ 14 billion, with adjusted earnings per share expected to range from $2.12 to$ 2.26 [10] Financial Performance - Q4 sales totaled $3.5 billion, down 8% year-over-year, with a divestiture-adjusted operational basis showing a 1% increase [4] - Sales from Developed Markets were$ 2.15 billion, down 7%, missing the estimate of $2.17 billion [4] - Emerging Markets sales were$ 513.2 million, down 17%, also missing the estimate of $539 million [5] - JANZ sales were$ 334.5 million, down 10%, missing the estimate of $366 million [5] - Greater China sales totaled$ 521.8 million, up 1%, but still below the estimate of $553 million [5] Product Category Performance - Revenues from Brands decreased by 10% to$ 2.1 billion, with flat sales on a divestiture-adjusted operational basis [6] - Lipitor sales were $355.9 million, down from$ 379.6 million year-over-year [6] - Generics revenues were $1.3 billion, down 5%, but up 2% on an operational change basis [7] Margin and Regulatory Issues - Adjusted gross margin was 56.3%, down from 57.5% in the previous year [8] - The company received a warning letter and import alert from the FDA affecting 11 products, which is expected to negatively impact 2025 revenues by approximately$ 500 million [11][12] Market Reaction - Following the disappointing results, VTRS shares have dropped 4.8% year-to-date, compared to a 16.6% decline in the industry [2]