What to Look for in Teva Pharmaceuticals Earnings

Health and Healthcare

Published: November 14, 2016 12:25 pm

Last Updated: January 12, 2020 5:50 pm

Teva Pharmaceuticals Industries Ltd. (NYSE: TEVA) is set to release its third-quarter financial results before the markets open on Tuesday. This company has so far been unable to escape its rough patch in 2016. However there may now be a light at the end of the tunnel, considering the election results.

The Thomson Reuters consensus estimates are $1.29 in earnings per share (EPS) and $5.75 billion in revenue. In the same period of last year, Teva posted EPS of $1.35 and $4.82 billion in revenue.

24/7 Wall St. views Teva as a stock to own for a decade for a few reasons. But it has been another laggard in the group versus the market since 2010. What Teva has going for it on top of a branded portfolio is being the world’s most dominant player in generic drugs.

Teva has doubled its dividend in the past five years. It is also valued at about 10 times earnings. The 2016 election rhetoric around drug prices remains a risk, but this has happened before, and generic drugs are only going to see their shares of all drug prescriptions rise through time. Saving money in drugs at a time when health care costs are rising is a must.

Ahead of the earnings report, a few analysts weighed in on Teva:

RBC Capital Markets has an Outperform rating with a $58 price target.
Barclays has an Equal Weight rating with a $46 price target.
Merrill Lynch has a Neutral rating with a $48 price target.
HSBC has a Hold rating.
Credit Suisse has an Outperform rating with a $52 price target.
Mizuho has a Neutral rating with a $45 price target.
Deutsche Bank has a Buy rating with a $68 price target.

So far in 2016, Teva has underperformed the broad markets, with the stock down 38%. Over the past 52 weeks, the stock is down 31%.

Shares of Teva were trading down 0.6% at $40.40 on Monday, with a consensus analyst price target of $63.77 and a 52-week trading range of $37.82 to $66.55.

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