Miller Value Partners, an investment management company, released its “Income Strategy” third-quarter 2022 investor letter. A copy of the same can be downloaded here. In the third quarter, the strategy returned -7.34% net of fees compared to a -0.68% return for the ICE BofA US High Yield Index. Also, the fund underperformed the S&P 500 Index which returned -4.88% in the quarter. In addition, please check the fund’s top five holdings to know its best picks in 2022.
Miller Value Partners discussed stocks like Viatris Inc. (NASDAQ:VTRS) in its Q3 2022 investor letter. Headquartered in Canonsburg, Pennsylvania, Viatris Inc. (NASDAQ:VTRS) is a healthcare company. On October 20, 2022, Viatris Inc. (NASDAQ:VTRS) stock closed at $9.34 per share. One-month return of Viatris Inc. (NASDAQ:VTRS) was 7.48% and its shares lost 33.00% of their value over the last 52 weeks. Viatris Inc. (NASDAQ:VTRS) has a market capitalization of $11.325 billion.
Miller Value Partners made the following comment about Viatris Inc. (NASDAQ:VTRS) in its Q3 2022 investor letter:
“Viatris Inc. (NASDAQ:VTRS) fell 17.8%2 during the quarter. Viatris reported 2Q22 revenue of $4.12 billion, -3% Y/Y on an operational basis, below consensus of $4.19 billion, and diluted EPS of $0.26, compared to a net loss per share of -$0.23 in 2Q21, ahead of analyst expectations for EPS of $0.19. The company generated 2Q22 FCF of $718.6 million, bringing TTM FCF to $3,082.9 million, or a FCF yield of 26.6%. In the 1H22, Viatris retired $1.5 billion in debt, which puts the company well on track to achieve its FY22 debt paydown target of $2.0 billion. While the company lowered FY22 revenue guidance to be in a range of $16.2-16.7 billion, compared to previous guidance for revenue of $17-17.5 billion, this revision is solely attributable to the incremental impact of FX headwinds. The company reaffirmed FY22 guidance for Adjusted EBITDA of $5.8-6.2 billion (36.5% margin at midpoint) and FCF of $2.5-2.9 billion, or a forward FCF yield of 23.3%. The company generated approximately $84 million in new product revenues in 2Q22, bringing 1H22 revenues to $205 million, which were primarily driven by interchangeable Semglee in the US, and the company remains on track to achieve ~$600 million (3.7% of FY22 guided revenue at the midpoint) in FY22 new product revenues.”
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Viatris Inc. (NASDAQ:VTRS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 50 hedge fund portfolios held Viatris Inc. (NASDAQ:VTRS) at the end of the second quarter, which was 55 in the previous quarter.
We discussed Viatris Inc. (NASDAQ:VTRS) in another article and shared the list of stocks to buy according to James Morrow’s Callodine Capital Management. In addition, please check out our hedge fund investor letters Q3 2022 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
