Medication company Viatris (NASDAQ:VTRS) will be reporting results tomorrow before market open. Here’s what to expect.

Viatris beat analysts’ revenue expectations by 1% last quarter, reporting revenues of $3.75 billion, down 4.8% year on year. It was a mixed quarter for the company, with a solid beat of analysts’ EPS estimates but a slight miss of analysts’ full-year EPS guidance estimates.

Is Viatris a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Viatris’s revenue to decline 6.4% year on year to $3.59 billion, a deceleration from its flat revenue in the same quarter last year. Adjusted earnings are expected to come in at $0.57 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Viatris has missed Wall Street’s revenue estimates five times over the last two years.

Looking at Viatris’s peers in the pharmaceuticals segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Supernus Pharmaceuticals delivered year-on-year revenue growth of 6%, beating analysts’ expectations by 12.2%, and Jazz Pharmaceuticals reported revenues up 7.5%, topping estimates by 2.8%.

Read our full analysis of Supernus Pharmaceuticals’s results here and Jazz Pharmaceuticals’s results here.

Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market has been optimistic as of late due to a soft landing. This is an economic situation where rate hikes successfully quelled inflation but did not send the economy into a recession. Furthermore, recent rate cuts and Donald Trump's triumph in the 2024 Presidential election have been tailwinds for the market, and while some of the pharmaceuticals stocks have shown solid performance, the group has generally underperformed, with share prices down 4.5% on average over the last month. Viatris is up 2% during the same time and is heading into earnings with an average analyst price target of $13.20 (compared to the current share price of $11.42).

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