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Teva (TEVA) Q3 Earnings Miss, Cuts 2017 View, Stock Falls

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Israel-based Teva Pharmaceutical Industries Ltd. (TEVA - Free Report) 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), Azilect (Parkinson’s disease) and respiratory products like ProAir and Qvar.  Moreover, the company has several candidates in its pipeline which are in different stages of development.

In early Aug 2016, Teva acquired Allergan’s generics business – Actavis Generics and in Oct 2016 it acquired the latter’s Anda Inc., the 4th largest distributor of generic pharmaceuticals in the U.S.

Teva’s earnings have surpassed expectations in only one of the last four quarters, met the same in one and missed expectations in the remaining two, resulting in an average negative surprise of 1.66%. Estimate movement has been mostly downward over the past 30 days.

Currently, TEVA has a Zacks Rank #5 (Sell), 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 Miss: Teva’s third quarter earnings came in at $1.00 per share, which missed Zacks consensus estimate of $1.05 per share.

Revenues In Line: Teva posted revenues of $5.61 billion, in line with the consensus estimates. Sales increased 1% year over year.

Sales in the quarter were hurt by increased pricing erosion and volume declines in the U.S. Generics unit, ongoing political turmoil in Venezuela and loss of exclusivity in the Specialty segment in the quarter.

Key Statistics: Generic segment sales were $3 billion, down 8% year over year while Specialty segment sales were $2.03 billion, down 1%.

Lead branded product, multiple sclerosis drug Copaxone, posted worldwide sales of $987 million, down 7% due to generic competition.

Glatopa, a generic version of Copaxone 20 mg, is being marketed by Momenta and Sandoz since 2015 while Mylan launched its version of the 20 mg formulation last month. Last month, Mylan also launched (at-risk) its generic version of the 40 mg formulation, much earlier than expected.

Slashes 2017 Outlook: Teva lowered its 2017 sales and earnings outlook, for the second time this year. Teva now expects revenues in a range of $22.2 - $22.3 billion as against $22.8 - $23.2 billion expected previously. The company expects earnings in a band of $3.77–$3.88 per share in 2017 significantly lower than $4.30–$4.50 per share expected previously.

Share Price Impact: Shares were down more than 6% in pre-market trading.

Check back later for our full write up on this TEVA earnings report later!

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