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Viatris Inc. VTRS delivered fourth-quarter 2024 adjusted earnings of 54 cents per share, which missed the Zacks Consensus Estimate of 57 cents. The company recorded adjusted earnings of 62 cents per share in the year-ago quarter.

Total revenues were $3.53 billion, down 8.5% year over year. The top line included product sales and other revenues. Revenues missed the Zacks Consensus Estimate of $3.6 billion.

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Shares are trading down in response to the disappointing results. VTRS’ share price has dropped 4.8% year to date compared with the industry’s 16.6% decline.

All growth rates mentioned below are on a year-over-year basis.

VTRS’ Q4 Sales in Detail

Sales totaled $3.5 billion, down 8%. Sales were up 1% on a divestiture-adjusted operational basis compared to the prior-year results.

The company reports under four segments — Developed Markets, Emerging Markets, Japan, Australia and New Zealand (JANZ) and Greater China.

Sales from Developed Markets amounted to $2.15 billion, down 7%. The reported figure missed the Zacks Consensus Estimate of $2.17 billion.

Sales from Emerging Markets totaled $513.2 million, down 17%. The figure missed the Zacks Consensus Estimate of $539 million.

JANZ generated sales of $334.5 million, down 10%. Sales missed the Zacks Consensus Estimate of $366 million.

Sales from Greater China totaled $521.8 million, up 1%. The figure missed the Zacks Consensus Estimate of $553 million.

Based on product category, revenues from Brands decreased 10% to $2.1 billion. On a divestiture-adjusted operational basis, sales were flat, reflecting the expansion of the portfolio in Emerging Markets and JANZ, and strong growth in Greater China.

Among Brands, Lipitor sales totaled $355.9 million, down from $379.6 million in the year-ago quarter. Norvasc sales decreased to $166.2 million from $171.8 million a year ago. Lyrica sales declined to $127 million from $133 million.

Yupelri sales totaled $66.6 million, up from $60.5 million in the year-ago quarter.

Generics, which includes diversified product forms such as extended-release oral solids, injectables, transdermals, and topicals and complex generics, posted revenues of $1.3 billion, down 5%. On an operational change basis, sales were up 2%.

Viatris generated $85 million in new generic product revenues. It expects to generate $450-$550 million in new product revenues in 2025.

Adjusted gross margin was 56.3%, down from 57.5% reported in the year-ago quarter.

VTRS 2024 Results

Revenues of $14.7 billion were down 4.4% from 2023 and missed the Zacks Consensus Estimate of $14.8 million. Adjusted EPS of $2.65 was down from $2.93 in 2023 and missed the Zacks Consensus Estimate of $2.68.

Viatris Inc. Price, Consensus and EPS Surprise

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

VTRS 2025 Guidance

Total revenues are projected to be in the band of $13.5-$14 billion. Adjusted earnings per share are expected to be in the range of $2.12-$2.26.

Other Updates From VTRS

Following an inspection of Viatris' oral finished dose manufacturing facility in Indore, India, in June 2024, VTRS received a warning letter and import alert from the FDA in December 2024.

The import alert affects 11 actively distributed products, including lenalidomide and everolimus. However, the regulatory body made exceptions for four products based on shortage concerns.

While these products continue to be shipped from the Indore facility to markets outside the United States, VTRS currently anticipates some impact in other markets. Due to this, VTRS estimates 2025 revenues to be negatively impacted by approximately $500 million.

Our Take on VTRS’ Q4 Performance

The company reported lower-than-expected fourth-quarter results, wherein the top and bottom lines missed their respective estimates. The guidance for 2025 was disappointing as well.

Zacks Rank and Stocks to Consider

Viatris currently carries a Zacks Rank #4 (Sell).

Some better-ranked stocks from the sector are Gilead Sciences GILD, BioMarin Pharmaceutical BMRN and Amicus Therapeutics FOLD, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

In the past 30 days, Gilead Sciences’ earnings estimates for 2025 have improved from $7.56 to $7.81 per share. During the same timeframe, EPS for 2026 has improved to $8.17 from $7.82.

GILD’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 19.47%.

In the past 30 days, estimates for BioMarin Pharmaceutical’s 2025 earnings per share have increased from $4.01 to $4.19. Estimates for 2026 earnings per share have decreased from $5.21 to $5.20 during the same timeframe. BMRN’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 32.36%.

In the past 30 days, the estimate for Amicus Therapeutics’ 2025 earnings per share has remained constant at 43 cents. The estimate for 2026 earnings per share has moved down from 72 cents to 71 cents. FOLD’s earnings beat estimates in three of the trailing four quarters and missed once, delivering an average surprise of 45.42%.

This article originally published on Zacks Investment Research (zacks.com).

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