Shares of Viatris(NASDAQ: VTRS) were jumping 6% higher as of 11:18 a.m. ET on Thursday after rising as much as 12.4% earlier in the day. The solid gain came after the global healthcare company announced its second-quarter results before the market opened.
Viatris reported Q2 revenue of nearly $3.8 billion. Although this reflected a 3% year-over-year decline, it met Wall Street expectations.
The company recorded a Q2 net loss of $326 million, or $0.27 per share, based on generally accepted accounting principles (GAAP). However, Viatris posted positive adjusted earnings per share of $0.69, up 3% year over year and topping the average analysts' estimate of $0.68.
What investors liked the most about Viatris' Q2 update
More than anything, investors liked that Viatris appears to be on the right track to deliver solid growth going forward. The company said that the completion of a round of divestitures marks "an inflection point" in its goal to accelerate growth.
Viatris also raised its full-year new product revenue forecast. It now expects a range of $500 million to $800 million, up from the previous projection of $450 million to $550 million.
Is Viatris stock a buy?
Viatris isn't and might never be a great pick for growth investors. However, I think it's a good choice for income investors, with its forward dividend yield of nearly 4% and an improving outlook.
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Keith Speights has no position in any of the stocks mentioned. The Motley Fool recommends Viatris. The Motley Fool has a disclosure policy.
