Teva Pharmaceutical Industries Ltd. (NYSE: TEVA) is finding a bit of a sell-the-news reaction to its first-quarter earnings report. The generic and branded pharmaceutical outfit reported that revenues rose 2% from a year ago to $5.0 billion, and its operating (non-GAAP) net income rose by 8% to $1.0 billion. The same non-GAAP earnings per share rose 9% to $1.22 per share.

Thomson Reuters had estimates pegged at $1.21 per share and revenue at $5.11 billion.

• A breakdown of the segments was as follows:U.S. generic medicine revenue rose by 17%.
• Generic medicine revenues comprised 48% of total revenues in the quarter.
• European revenues of $818 million, a decrease of 4%, or 7% in local currency terms.
• Generic medicine segment profits rose by 31%.
• Specialty medicine revenues rose by 3% to $2.1 billion in the quarter.
• Cash flow from operations was $1.1 billion (ex-legal settlements).
• API sales to third parties in the first quarter were down 7% to $179 million.

President and CEO Erez Vigodman said in the release:

We are intensely focused on solidifying the foundation of Teva, maintaining the Copaxone® franchise, driving sustainable organic growth, and positioning Teva for long-term value creation. During 2014, we will deliver significant savings as part of our cost reduction program, accelerate the transformation of our operations network, strengthen our global leadership in generics and continue to increase confidence in Teva.

Teva shares closed down 1.4% at $48.86 ahead of earnings on Wednesday, and shares were indicated down another 0.8% at $49.16 in early trading indications on Thursday. This stock has traded in a range of $36.26 to $54.70 in the past 52-weeks.

Teva shares were already looking better than the selling waves of last year. Unfortunately, the company has to do better than merely turn in a mixed earnings report.

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