Mylan’s Earnings

Mylan (MYL) just reported Q4 earnings $1.05 per share which matched Wall Street’s estimate. Quarterly revenue rose 15% to $2.08 billion which beat consensus by $10 million.

I like to keep an eye on Mylan because it’s one of the great long-term performers. Since 1978, shares of Mylan are up 403,641% compared with 2,196% for the S&P 500. That’s amazing.

Four years ago, Mylan said they expect to double their profit by 2018:

Mylan said its sees EPS for this year ranging between $2.30 and $2.50. That’s a growth rate of 13% to 23%. It also means the stock is going for less than 10 times earnings. For next year, Mylan sees earnings of $2.75 per share. For 2018, Mylan said that its goal is earnings of $6 per share.

Let’s see how they’re doing. That forecast for 2012 was quite modest. Mylan actually earned $2.59 per share. They then beat the $2.75 per share forecast for 2013 by 12 cents per share. Mylan earned $3.56 per share last year, and expects to earn between $4.00 and $4.30 this year.

Let’s assume they hit the middle of their forecast range for this year. That means Mylan needs to grow earnings by 13.1% per year for the next three years to hit $6 per share by 2018. That’s quite possible, so that optimistic forecast from 2012 seems very doable.

People spend so much time looking for great stocks. Four years ago, Mylan was a bargain hidden in plain sight.

Posted by on March 3rd, 2015 at 12:07 pm


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