(By Balaseshan) Mylan Inc. (NASDAQ: MYL), reported better than expected quarterly earnings on double-digit growth in its North American, Generics and Specialty businesses. Further, the pharmaceutical company lifted full year 2012 earnings forecast.
Earnings per share (EPS) for the third quarter jumped 42% to $0.51. Adjusted earnings rose to $341.3 million or $0.83 per share from $237.8 million or $0.55 per share.
Revenue increased 14.8% to $1.81 billion, while adjusted revenue rose 14.3% to $1.80 billion.
The effect of foreign currency translation had an unfavorable impact of about 5% on total revenues primarily reflecting a stronger U.S. Dollar in comparison to the currencies of the other major markets in which Mylan operates.
Analysts, on average, surveyed by Thomson Reuters had expected a profit of $0.77 per share on revenue of $1.85 billion for the third quarter.
Generics revenue grew 10.1% to $1.50 billion, while specialty revenue jumped 37.4% to $294.1 million. Revenue from North America increased 19.2%, principally due to sales of new products which totaled about $258 million in the current quarter.
Adjusted gross margins rose to 52% from 48%, primarily the result of new product introductions in North America and the increase in sales of the Epipen auto-injector, partially offset by the impact of unfavorable pricing on existing products in all regions within Generics segment.
Looking ahead into the fiscal 2012, the company raised its adjusted EPS guidance to range of $2.50 to $2.60 from previous estimate of $2.45 to $2.55, while Street predicts $2.52.
As a result of strong performance so far this year, MYL now anticipates 2012 adjusted operating cash flow of about $1 billion, which is at the very upper end of previous estimate, and now expects 2012 adjusted free cash flow of about $700 million.
Looking to next year, the company continues to remain confident in its 2013 adjusted EPS target of $2.75, in line with Street's view, as well as its longer term target of $6.00 in 2018.
MYL ended Wednesday's regular session up 2.13% at $23.94. The stock has been trading between $17.22 and $24.88 for the past 52 weeks.