Teva Pharmaceutical Industries Ltd. (NYSE: TEVA) is out with its fourth-quarter earnings report, and it looks as though the bad trends may be more and more in the past.

Fourth-quarter net revenues were up 3% to $5.4 billion, and adjusted earnings came in at $1.42 per share. The estimates from Thomson Reuters were $5.19 billion in revenue and earnings of $1.40 per share. The quarterly sales increase was primarily tied to higher U.S. generic sales and higher revenues from Teva’s global specialty medicines business, as well as higher sales of over-the-counter products.

To put the value in perspective here, Teva’s full 2013 adjusted earnings came to $5.01 per share. This was also slightly above the $4.98 per share consensus estimate, but this translates to a company still trading at only nine times earnings.

The company is also reaffirming its 2014 guidance, but the problem here is that earnings and sales are expected to contract marginally. The statement even said:

2013 was an important year for Teva and its shareholders. Many seeds were planted to ensure our long-term success and prosperity. 2014 will be a pivotal year in terms of execution and further enhancement of our strategic direction.

Teva shares have already spent much time recovering from the low point of 2013. After it closed at $45.39, Teva’s 52-week range is $36.26 to $45.98. The company’s market cap of about $38.3 billion still makes it smaller than many U.S. drug giants, and even smaller than the biotech giants.

This company’s turnaround is far from over. It likely still needs to go look for some outside growth opportunities. Still, the trend is moving toward generic drugs, and that bodes well for Teva, even if some of its branded drugs have more competition ahead.

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