Israel-based Teva Pharmaceutical Industries Ltd. (NYSE:TEVA) is a global pharmaceutical company with a strong presence in the generics as well as branded markets. The company’s branded products include Copaxone (multiple sclerosis), Austedo (chorea associated with Huntington’s disease and tardive dyskinesia) and respiratory products like Qvar.
Teva is facing significant challenges in the form of accelerated generic competition for Copaxone, new competition for branded products, pricing erosion in the U.S. generics business and a massive debt load. However, it has made impressive progress on restructuring activities and has a more stable financial position than before. However, we believe the company has a long way to go before it gains stability.
Teva’s earnings surpassed expectations in three the last four reported quarters, with the average positive surprise being 9.54%.
Currently, TEVA has a Zacks Rank #3 (Hold), but that could definitely change following the company’s earnings report which was just released. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
We have highlighted some of the key stats from this just-revealed announcement below:
Earnings Beat: Teva’s second-quarter earnings came in at 60 cents per share which beat the consensus estimate of 58 cents.
Revenues Beat: Teva posted revenues of $4.34 billion, which beat the consensus estimate of $4.26 billion. Sales declined 8% (down 5% in constant currency terms) year over year.
Key Statistics: North America segment sales were $2.07 billion, down 8% year over year due to lower sales of Copaxone as well as Bendeka/Treanda. In the United States, revenues declined 10%year over year to $1.93 billion.
Lead branded product, Copaxone, posted sales of $274 million in North America, down 41% year over year due to generic competition in the United States. Qvar sales rose 103% to $60 million in the quarter. ProAir sales declined 44% year over year to $65 million. Generic products revenues were flat to $946 million in the quarter as additional sales from the launch of generic products made up for price erosion in the U.S business.
The Europe segment recorded revenues of $1.18 billion, down 11% (down 5% in constant currency terms) year over year. In the International Markets segment, sales declined 6% (down 2% in constant currency terms) to $741 million.
2019 Outlook Maintained: Teva re-affirmed its previously issued guidance for sales and earnings in 2019. The company expects revenues to be in the range of $17 - $17.4 billion. Meanwhile, the earnings guidance lie in a band of $2.20-2.50 per share.
Share Price Impact: Shares were up more than 1% in pre-market trading.
Teva Pharmaceutical Industries Ltd. (TEVA): Free Stock Analysis Report
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