PITTSBURGH - Viatris Inc. (NASDAQ: NASDAQ:VTRS) experienced a notable 4.31% increase in stock price premarket Wednesday following the announcement of its fourth-quarter earnings and forward-looking guidance for fiscal year 2024, though it is trading flat as of this writing.
The pharmaceutical company reported a fourth-quarter loss per share of -$0.64, which was significantly below the analyst consensus of $0.65. Revenue for the quarter was $3.84 billion, narrowly missing the consensus estimate of $3.88 billion.
Despite the earnings miss, investor sentiment was buoyed by the company's revenue guidance for the upcoming fiscal year. Viatris forecasts 2024 revenues to range between $15.25 billion and $15.75 billion, surpassing the analyst consensus of $15.194 billion. This positive revenue outlook reflects the company's expectations for continued growth and operational success in the coming year.
Viatris CEO Scott A. Smith commented on the company's performance, stating, "2023 was an outstanding year for Viatris in which we delivered strong operational results, streamlined the Company and finished the year with our third consecutive quarter of operational revenue growth." Smith's statement highlights the company's strategic efforts to optimize its operations and its anticipation of sustained growth in 2024.
The company's adjusted EPS guidance for 2024 is projected to be between $2.70 and $2.85, with the midpoint of $2.78 slightly below the consensus estimate of $2.81. Despite this, the market's positive reaction suggests that investors are focusing on the company's overall financial health and prospects for revenue growth.
Viatris' commitment to enhancing shareholder value is further evidenced by its share repurchase program and the maintenance of its dividend policy. The Board of Directors has authorized an additional $1 billion for share repurchases, bringing the total authorization to $2 billion. Additionally, the company has declared a quarterly dividend of $0.12 per share, in line with its 2024 dividend policy of $0.48 per share.
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