Back to top

Image: Bigstock

Teva (TEVA) Misses on Q4 Earnings, Beats Sales, Shares Down

Read MoreHide Full Article

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), Austedo (chorea associated with Huntington’s disease and tardive dyskinesia) and respiratory products like ProAir and 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, lower-than-expected contribution from new generic launches and a massive debt load. Nonetheless, Teva is progressing well on its strategic/restructuring initiatives to revive growth.

Teva’s earnings surpassed expectations in all the last four quarters, resulting in an average positive surprise of 23.28%.

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 Miss: Teva’s fourth-quarter earnings came in at 53 cents per share which missed consensus estimate of 56 cents.

Revenues Beat: Teva posted revenues of $4.56 billion, which marginally beat consensus estimates of $4.54 billion. Sales declined 16% (down 14% in constant currency terms) year over year.

Key Statistics: North America segment sales were $2.23 billion, down 17% year over year due to pricing erosion in U.S. generics market, lower sales of Copaxone as well as ProAir and QVAR, and loss of sales from the divested Women’s Health business. Growth in Austedo sales partially offset the decline in sales. In the United States, revenues declined 17% to $2.1 billion.

Lead branded product, Copaxone, posted sales of $356 million in North America, down 44% year over year due to generic competition in the United States. Sales of generic products declined 10% to $1.1 billion. However, sales of Austedo increased from $17 million in year-ago period to $68 million.

The Europe segment recorded revenues of $1.2 billion, down 17% (down 14% in constant currency terms) year over year. In the International Markets segments, sales declined 13% in constant currency terms.

2019 Outlook Weak: Teva provided its 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. However, earnings and sales outlook were lower than the Zacks consensus estimates.

Share Price Impact: Shares were down more than 12.1% in pre-market trading.

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

3 Medical Stocks to Buy Now

The greatest discovery in this century of biology is now at the flashpoint between theory and realization. Billions of dollars in research have poured into it. Companies are already generating revenue, and cures for a variety of deadly diseases are in the pipeline.

So are big potential profits for early investors. Zacks has released an updated Special Report that explains this breakthrough and names the best 3 stocks to ride it.

See them today for free >>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Teva Pharmaceutical Industries Ltd. (TEVA) - free report >>

Published in