Teva Pharmaceutical (TEVA) Stock Sinks on Lowered Outlook
Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVA) stock was down today after the company lowered its outlook for 2017.
Source: Open Grid Scheduler (Modified)
Teva Pharmaceutical Industries Ltd (ADR)’s lowered outlook includes earnings per share ranging from $3.77 to $3.87. It was previously expecting 2017 earnings per share between $4.30 and $4.50. This is bad news for TEVA stock as Wall Street is looking for earnings per share of $4.19 for the year.
TEVA stock also took a hit as the company’s lowered its revenue guidance for 2017 to between $22.2 billion and $22.3 billion. The company’s previous revenue guidance was in the rage of $22.8 billion to $23.2 billion. Analysts are estimating revenue of $22.62 billion in 2017.
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Teva Pharmaceutical Industries Ltd (ADR) also notes that it is now expecting cash flow from operations for the full year of 2017 to be between $3.15 and $3.3 billion. Its previous guidance for 2017 free cash flow ranged from $4.4 billion to $4.6 billion.
Teva Pharmaceutical Industries Ltd (ADR) gives a couple of reasons for the 2017 guidance cut. The first reason is the launch of Mylan N.V.’s (NASDAQ:MYL) generic version of Copaxone. TEVA says that this release came sooner than it expected and will hurt its 2017 earnings earnings per share by 30 cents.
Teva Pharmaceutical Industries Ltd (ADR)’s second reason for lowering its 2017 guidance are poor sales of new generic drugs in the U.S. The company says it now only expects new generic drug sales in the country to be $400 million, instead of $500 million, for the year.
TEVA stock was down 15% as of noon Thursday and is down 67% year-to-date.
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As of this writing, William White did not hold a position in any of the aforementioned securities.
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