Teva Pharmaceutical Industries (TEVA) Stock: Falling Hard On Earnings

Teva Pharmaceutical Industries Ltd (ADR) (NYSE: TEVA) is having an overwhelmingly rough start to the trading session this morning, and for good reason. The company reported its earnings for the third quarter, not only missing expectations, but slashing guidance in the process. Below, we’ll talk about earnings, how the stock reacted to the news, and what we’ll be watching for ahead.

TEVA Misses Earnings And Slashes Guidance

As mentioned above, Teva Pharmaceutical Industries is having an incredibly rough start to the trading session this morning after reporting earnings. Here’s what we saw from the report that led to fear among investors:

  • Earnings – In terms of earnings per share, TEVA missed the mark. During the quarter, it was expected that the company would report earnings in the amount of $1.05 per share. However, the company actually reported earnings in the amount of $1.00 per share, missing expectations.

  • Revenue – In terms of revenue, the company came in right in line with expectations. During the quarter, TEVA generated revenue in the amount of $5.61 billion.

  • Guidance – Finally, guidance proved to be another source of concern. During the 2017 fiscal year, Teva Pharmaceutical Industries said that it is expecting that revenues will come in the range between $22.2 and $22.3 billion. This is the second time this year the company reduced expectations. Previous guidance suggested that revenue would come in between $22.8 and $23.2 billion. When it comes to earnings, it is now expected that the company will generate full year earnings in the range between $3.77 per share and $3.88 per share. That figure is down dramatically from previous guidance of $4.30 per share to $4.50 per share.

How The Stock Reacted To The News

As we’ve come to expect, any time a publicly traded company releases poor earnings and guidance, we tend to see declines in the stock as a result. That’s exactly what we’re seeing from TEVA today. Currently (9:18), the stock is trading at $12.00 per share after a loss of $2.02 per share or 14.41% thus far today.

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What We’ll Be Watching For Ahead

Moving forward, the CNA Finance team will be keeping a close eye on TEVA. In particular, we’re interested in following the company’s financial performance through the fourth quarter and hoping for a turnaround in the quarter. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!

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