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Teva Pharmaceutical Industries Ltd. (TEVA - Free Report) is a global pharmaceutical company with a strong presence in the generics market while also having some branded drugs in its portfolio.
Teva faces challenges in the form of generic erosion of key branded drug, Copaxone, new competition for other branded products, pricing erosion in the U.S. generics business, a sparse branded pipeline and a high debt load. However, its newest drugs Austedo and Ajovy could emerge as significant drivers of long-term sales growth. It is also seeing stabilization in U.S. and European generics business. However, the opioid litigation and price-fixing investigations are an overhang on the stock.
Teva’s earnings performance has been mixed, with the company beating expectations in two of the past four quarters, matching estimates in one and missing the same in the remaining quarter. The four-quarter average earnings surprise is 8.33%.
We have highlighted some of the key stats from this just-revealed announcement below:
Earnings In Line: Teva’s third-quarter earnings of 58 cents per share were in line with the consensus estimate.
Revenues Miss: Teva posted revenues of $3.98 billion, which missed the consensus estimate of $4.06 billion. Sales declined 3% on a reported as well as constant currency terms year over year.
Key Statistics: North America segment sales were $2.02 billion, down 2% year over year due to lower sales of branded drugs, Copaxone and Bendeka/Treanda which offset higher sales of generic products.
Copaxone posted sales of $236 million in North America, down 13% year over year due to generic erosion. Combined sales of Bendeka and Treanda declined 15% to $105 million.
Austedo, a new drug approved to treat chorea associated with Huntington’s disease and tardive dyskinesia, recorded sales of $168 million in the quarter in North America compared with $161 million in the previous quarter. Ajovy, Teva’s new migraine treatment, recorded sales of $35 million in the quarter compared to $34 million in the previous quarter. Generic products revenues rose 2% at $928 million in the North America segment
The Europe segment recorded revenues of $1.12 billion, down 4% (down 7% in constant currency terms) year over year. In the International Markets segment, sales declined 6% (down 1% in constant currency terms) to $529 million.
2020 Outlook: Teva slightly lowered its previously issued sales guidance for 2020. It expects revenues to be in the range of $16.5 - $16.8 billion versus $16.6 - $17.0 billion previously. Earnings guidance was tightened from a band of $2.30-2.55 per share to $2.40-2.55 per share.
Share Price Impact: Shares declined around 2% in pre-market trading.
Check back later for our full write up on this TEVA earnings report later!
Teva Pharmaceutical Industries Ltd. Price and Consensus
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Image: Bigstock
TEVA Q3 Earnings In Line, Sales Miss, Stock Down
Teva Pharmaceutical Industries Ltd. (TEVA - Free Report) is a global pharmaceutical company with a strong presence in the generics market while also having some branded drugs in its portfolio.
Teva faces challenges in the form of generic erosion of key branded drug, Copaxone, new competition for other branded products, pricing erosion in the U.S. generics business, a sparse branded pipeline and a high debt load. However, its newest drugs Austedo and Ajovy could emerge as significant drivers of long-term sales growth. It is also seeing stabilization in U.S. and European generics business. However, the opioid litigation and price-fixing investigations are an overhang on the stock.
Teva’s earnings performance has been mixed, with the company beating expectations in two of the past four quarters, matching estimates in one and missing the same in the remaining quarter. The four-quarter average earnings surprise is 8.33%.
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 In Line: Teva’s third-quarter earnings of 58 cents per share were in line with the consensus estimate.
Revenues Miss: Teva posted revenues of $3.98 billion, which missed the consensus estimate of $4.06 billion. Sales declined 3% on a reported as well as constant currency terms year over year.
Key Statistics: North America segment sales were $2.02 billion, down 2% year over year due to lower sales of branded drugs, Copaxone and Bendeka/Treanda which offset higher sales of generic products.
Copaxone posted sales of $236 million in North America, down 13% year over year due to generic erosion. Combined sales of Bendeka and Treanda declined 15% to $105 million.
Austedo, a new drug approved to treat chorea associated with Huntington’s disease and tardive dyskinesia, recorded sales of $168 million in the quarter in North America compared with $161 million in the previous quarter. Ajovy, Teva’s new migraine treatment, recorded sales of $35 million in the quarter compared to $34 million in the previous quarter. Generic products revenues rose 2% at $928 million in the North America segment
The Europe segment recorded revenues of $1.12 billion, down 4% (down 7% in constant currency terms) year over year. In the International Markets segment, sales declined 6% (down 1% in constant currency terms) to $529 million.
2020 Outlook: Teva slightly lowered its previously issued sales guidance for 2020. It expects revenues to be in the range of $16.5 - $16.8 billion versus $16.6 - $17.0 billion previously. Earnings guidance was tightened from a band of $2.30-2.55 per share to $2.40-2.55 per share.
Share Price Impact: Shares declined around 2% in pre-market trading.
Check back later for our full write up on this TEVA earnings report later!
Teva Pharmaceutical Industries Ltd. Price and Consensus
Teva Pharmaceutical Industries Ltd. price-consensus-chart | Teva Pharmaceutical Industries Ltd. Quote
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
See the 5 high-tech stocks now>>