We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Teva (TEVA) to Report Q1 Earnings: What's in the Cards?
Read MoreHide Full Article
Teva Pharmaceutical Industries Ltd. (TEVA - Free Report) will report first-quarter 2018 earnings on May 3, before the market open. In the last reported quarter, the company delivered a positive earnings surprise of 14.81%.
This generic drug maker’s shares have lost 5.1% this year so far compared with the industry’s decline of 5.9%.
Teva’s earnings 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 positive surprise of 0.49%.
Teva Pharmaceutical Industries Ltd. Price and EPS Surprise
Let’s see how things are shaping up for this announcement.
Factors to Consider
Increased pricing erosion, volume declines in the U.S. Generics unit, rapid erosion in sales of Copaxone and declines in sales of several other products in the Specialty segment are expected to hurt Teva’s top line in the first quarter.
Significant competitive and pricing pressure in the generics industry is hurting sales of Teva’s Generics unit. The ongoing consolidation of customers in the generics industry is resulting in increasing price erosion and decreasing volume. Accelerated FDA approval of additional generic versions of competing off-patent medicines, increased competition for its largest product - Concerta authorized generic – and stringent government regulations are also hurting sales.
Meanwhile, in the Specialty segment, loss of exclusivity of key drugs like Copaxone, Azilect and Nuvigil and divesture of some non-core assets in the Women’s Health business will hurt sales.
Sales of blockbuster multiple sclerosis (MS) treatment, Copaxone are likely to erode due to lower volumes of the 20 mg and the 40 mg formulation, which are facing generic competition. Glatopa, a generic version of Copaxone 20 mg, is being marketed by Momenta and Sandoz - Novartis’ generic arm - since 2015 while Mylan launched its version of the 20 mg formulation in October 2017. In the same month, in a major blow to Teva, Mylan launched (at-risk) its generic version of the 40 mg thrice-weekly formulation, much earlier than expected.
With the entry of the generic version of the 40 mg formulation and the entry of a second generic version of the 20 mg formulation, there has been rapid erosion in sales of Copaxone. Moreover, a second generic version of the 40 mg formulation (Glatopa) was launched by Sandoz in February this year, much earlier than its scheduled launch in April.
To combat the rapid decline in sales, in December, Teva announced a restructuring plan that will see more than 25% of the company’s global workforce being laid off over the next two years with the majority expected in 2018. An update on the progress made so far on the restructuring plan is also expected on the call.
Earnings Whispers
Our proven model does not conclusively show that Teva is likely to beat on earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here, as you will see below.
Zacks ESP: Its Earnings ESP is +2.71% as the Most Accurate estimate stands at 70 cents per share while the Zacks Consensus Estimate is pegged lower at 68 cents per share. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Teva has a Zacks Rank #4 (Sell). We caution against stocks with a Zacks Rank #4 or #5 (Strong Sell) going into an earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are some drug/biotech stocks that have the right combination of elements to beat on earnings this time around:
AMAG Pharmaceuticals, Inc. has an Earnings ESP of +31.28% and a Zacks Rank #3. The company is scheduled to release results on May 3.
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Image: Bigstock
Teva (TEVA) to Report Q1 Earnings: What's in the Cards?
Teva Pharmaceutical Industries Ltd. (TEVA - Free Report) will report first-quarter 2018 earnings on May 3, before the market open. In the last reported quarter, the company delivered a positive earnings surprise of 14.81%.
This generic drug maker’s shares have lost 5.1% this year so far compared with the industry’s decline of 5.9%.
Teva’s earnings 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 positive surprise of 0.49%.
Teva Pharmaceutical Industries Ltd. Price and EPS Surprise
Teva Pharmaceutical Industries Ltd. Price and EPS Surprise | Teva Pharmaceutical Industries Ltd. Quote
Let’s see how things are shaping up for this announcement.
Factors to Consider
Increased pricing erosion, volume declines in the U.S. Generics unit, rapid erosion in sales of Copaxone and declines in sales of several other products in the Specialty segment are expected to hurt Teva’s top line in the first quarter.
Significant competitive and pricing pressure in the generics industry is hurting sales of Teva’s Generics unit. The ongoing consolidation of customers in the generics industry is resulting in increasing price erosion and decreasing volume. Accelerated FDA approval of additional generic versions of competing off-patent medicines, increased competition for its largest product - Concerta authorized generic – and stringent government regulations are also hurting sales.
Meanwhile, in the Specialty segment, loss of exclusivity of key drugs like Copaxone, Azilect and Nuvigil and divesture of some non-core assets in the Women’s Health business will hurt sales.
Sales of blockbuster multiple sclerosis (MS) treatment, Copaxone are likely to erode due to lower volumes of the 20 mg and the 40 mg formulation, which are facing generic competition. Glatopa, a generic version of Copaxone 20 mg, is being marketed by Momenta and Sandoz - Novartis’ generic arm - since 2015 while Mylan launched its version of the 20 mg formulation in October 2017. In the same month, in a major blow to Teva, Mylan launched (at-risk) its generic version of the 40 mg thrice-weekly formulation, much earlier than expected.
With the entry of the generic version of the 40 mg formulation and the entry of a second generic version of the 20 mg formulation, there has been rapid erosion in sales of Copaxone. Moreover, a second generic version of the 40 mg formulation (Glatopa) was launched by Sandoz in February this year, much earlier than its scheduled launch in April.
To combat the rapid decline in sales, in December, Teva announced a restructuring plan that will see more than 25% of the company’s global workforce being laid off over the next two years with the majority expected in 2018. An update on the progress made so far on the restructuring plan is also expected on the call.
Earnings Whispers
Our proven model does not conclusively show that Teva is likely to beat on earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here, as you will see below.
Zacks ESP: Its Earnings ESP is +2.71% as the Most Accurate estimate stands at 70 cents per share while the Zacks Consensus Estimate is pegged lower at 68 cents per share. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Teva has a Zacks Rank #4 (Sell). We caution against stocks with a Zacks Rank #4 or #5 (Strong Sell) going into an earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are some drug/biotech stocks that have the right combination of elements to beat on earnings this time around:
AMAG Pharmaceuticals, Inc. has an Earnings ESP of +31.28% and a Zacks Rank #3. The company is scheduled to release results on May 3.
Celgene Corporation has an Earnings ESP of +0.63% and a Zacks Rank #2. The company is scheduled to release results on May 4. You can see the complete list of today’s Zacks #1 Rank stocks here.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Click for details >>