Viatris Inc. (NASDAQ:VTRS) saw its stock surge 7.09% in pre-market trading on Thursday, following the release of its second-quarter earnings report that significantly exceeded analysts' expectations. The pharmaceutical company, known for products like Xanax and Viagra, demonstrated resilience in the face of operational challenges.

For the quarter ended June 30, Viatris reported an adjusted profit of $0.62 per share, surpassing the analyst consensus estimate of $0.55 by 12.73%. This impressive beat came despite a 10.14% decrease from the $0.69 per share reported in the same period last year. On the revenue front, Viatris outperformed as well, with quarterly sales of $3.58 billion beating the analyst consensus estimate of $3.47 billion by 3.17%. However, this figure represents a 6% decrease from the previous year, primarily due to import restrictions on certain products from its Indore, India facility.

Despite the year-over-year declines in both earnings and revenue, the market's positive reaction suggests investors are encouraged by Viatris's ability to exceed expectations in a challenging environment. CEO Scott Smith highlighted the company's "strong second quarter" and progress towards its 2025 strategic priorities. The company reaffirmed its annual profit forecast of $2.16 to $2.30 per share, further boosting investor confidence in Viatris's performance and outlook.