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Teva (TEVA) Beats on Q1 Earnings, Misses Sales, Shares Down

Kinjel Shah

Israel-based Teva Pharmaceutical Industries Ltd. TEVA 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), 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 and a massive debt load. However, it has made impressive progress on restructuring activities and has a more stable financial position than before. However, we believe the company has a long way to go before it gains stability.

Teva’s earnings surpassed expectations in three the last four quarters, with the average positive surprise being 18.24%.

Currently, TEVA has a Zacks Rank #5 (Strong 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 Beat: Teva’s first-quarter earnings came in at 60 cents per share which beat the consensus estimate of 58 cents.

Revenues Miss: Teva posted revenues of $4.3 billion, which missed the consensus estimates of $4.41 billion. Sales declined 15% (down 12% in constant currency terms) year over year.

Key Statistics: North America segment sales were $2.05 billion, down 19% year over year due to pricing erosion in U.S. generics market, lower sales of Copaxone as well as other branded drugs, Bendeka/Treanda and QVAR. In the United States, revenues declined 20% to $1.91 billion.

Lead branded product, Copaxone, posted sales of $208 million in North America, down 56% year over year due to generic competition in the United States. ProAir sales also declined sharply by 55% to $59 million.  Sales of generic products declined 11% to $966 million.

The Europe segment recorded revenues of $1.26 billion, down 12% (down 5% in constant currency terms) year over year. In the International Markets segment, sales declined 11% (down 3% in constant currency terms) to $668 million.

2019 Outlook Maintained: Teva re-affirmed its previously issued 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.

Share Price Impact: Shares were down around 1% 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 and Consensus | Teva Pharmaceutical Industries Ltd. Quote

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