Teva Earnings Send Shares to New Low Not Seen in Over a Decade

Health and Healthcare

Published: November 2, 2017 9:55 am

Last Updated: January 12, 2020 6:42 am

Teva Pharmaceutical Industries Ltd. (NYSE: TEVA) released its most recent quarterly results before the markets opened on Thursday. Teva has faced a lot of difficulty this year, and really since it peaked in 2015. But these quarterly numbers are another black eye for the company, sending shares to a low not seen since 2002. It begs the question of whether Teva can ever turn itself around.

The company posted $1.00 in earnings per share (EPS) and $5.61 billion in revenue. The consensus estimates from Thomson Reuters had called for $1.04 in EPS on revenue of $5.62 billion. The third-quarter of last year reportedly had EPS of $1.31 and $5.56 billion in revenue.

During the quarter, Generic medicines revenues decreased 8% year over year to $3.0 billion. This drop consisted of U.S. revenues falling 9% to $1.2 billion, European revenues increasing 6% to $985 million and ROW revenues dropping 18% to $843 million.

Specialty medicines revenues in the third quarter of 2017 were $2.0 billion, down 1% compared to the third quarter of 2016. U.S. specialty medicines revenues were down 4% to $1.5 billion. European specialty medicines revenues increased 10% to $447 million, or 5% in local currency terms. ROW specialty revenues were $94 million, up 12%.

In terms of the outlook for the fourth quarter, management expects to see EPS in the range of $0.70 to $0.80 and revenues between $5.3 billion and $5.4 billion. The consensus estimates call for $1.07 in EPS and $5.69 billion in revenue.

On the books, Teva’s cash and cash equivalents totaled $680 million at the end of the quarter, down from $988 million in the same period of last year.

The board of directors also declared a cash dividend of $0.085 per ordinary share for the third quarter of 2017, which will payable on December 12, 2017, for shareholders on record as of November 28, 2017.

Shares of Teva retreated more than 19% early Wednesday to $11.30. The consensus analyst price target was $19.74, and the prior 52-week range was $13.26 to $43.46.

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