On Thursday, in morning trade, Teva Pharmaceutical (TLV:$TEVA) shares dropped more than 18%. It all started after the Petah Tikva, Israel-based company posted lower-than-expected second-quarter earnings.
The multinational pharmaceutical company missed estimates for earnings per share and revenue, and CEO Yitzhak Peterburg is blaming the performance on a saturation of the United States drug market.
“[Teva] experienced… greater competition as a result of an increase in generic drug approvals by the U.S. FDA,” Peterburg said. He noted that, “customer consolidation” affected sales in the United States, before going on to say that competition hurt new product launches.
Let’s take a look at the numbers:
Teva Pharmaceutical announced that its profit fell to $1.04 billion ($1.02 per share). This is significant as it is down from $1.23 billion ($1.25 per share) in the 2016 second quarter. Further, analysts had forecast that the company would earn $1.06 per share, according to Thomson Reuters. Generally speaking, analysts’ estimates tend to exclude special items.
Additionally, Teva Pharmaceutical disclosed that revenue for the quarter increased 12.9% to $5.69 billion, up from $5.04 billion in 2016.
Brief Overview: Teva Pharmaceutical Second-Quarter Earnings
- Q2 Earnings: $1.04 billion versus $1.23 billion in 2016
- Teva Earnings Decline (Year-Over-Year): -15.4%
- Q2 Earnings Per Share: $1.02 versus $1.25 in 2016
- Analysts Forecasts: $1.06
- Q2 Revenue: $5.69 billion versus $5.04 billion in 2016
- Change in Revenue (Year-Over-Year): 12.9%
- 2017 EPS Guidance: $4.30 – $4.50
- 2017 Revenue Guidance: $22.8 – $23.2 billion
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