Should I buy Viatris shares after a strong Q3 report?

Viatris Inc. (NASDAQ: VTRS) shares have advanced more than 5% after the company reported better than expected third-quarter results on Monday.

Viatris's business continued to grow throughout the third fiscal quarter, and the company's management raised financial guidance for the full fiscal year during the third-quarter earnings call.

Viatris increased its financial guidance

Viatris reported better than expected third-quarter results this Monday; total revenue has increased by 53.2% Y/Y to $4.52 billion, which was more than expected, while the GAAP EPS was $0.26. Adjusted EBITDA for the third quarter of 2021 was $1.7 billion, and its branded business, primarily driven by Viagra and Lipitor continues to perform strongly.

The momentum the company achieved during the third quarter reflects the fact that Viatris is a global leader in generic drugs, which are expected to eventually make up about 90% of all global drug volumes.

The company's stability in a variety of market conditions has revealed its true staying power, while multiple fast-growing drugs in Viatris's portfolio should continue to drive revenue growth.

Viatris increased its financial guidance for the full fiscal year during the third-quarter earnings call, and the consistent strong execution should drive healthy growth in the last quarter of 2021 year.

The company's management expects revenue between $17.7 billion -$17.9 billion, while the adjusted EBITDA should be in the range of $6.30 billion to $6.50 billion. Michael Goettler, CEO of Viatris, added:

Fundamentally looking, Viatris trades at less than three times TTM EBITDA, and with a market capitalization of $16.6 billion, shares of this company are not expensive.

Viatris's balance sheet remains stable, the current dividend yield is around 1.5%, and shares of this company could provide strong returns for long-term investors.

Bulls control the price action

Viatris shares have advanced more than 5% since the beginning of November 2021, and according to technical analysis, the bulls remain in control of the price action for now. Rising above $15 supports the positive trend, and the next price target could be around $16.

If the price falls in the upcoming period, every price in a range from $10 to $13 could be a very good opportunity to invest in Viatris stock.

Summary

Viatris reported better than expected third-quarter results this week, and the company's management raised financial guidance for the full fiscal year during the third-quarter earnings call. The momentum the company achieved during the third quarter reflects the fact that Viatris is a global leader in generic drugs, and shares of this company could provide strong returns for long-term investors.