Teva Pharmaceutical Industries Ltd (NYSE: TEVA) is having an overwhelmingly rough start to the trading session this morning after the company released its earnings for the second quarter. While the earnings report seemed positive, meeting the top line and beating the bottom line expectations, the stock is falling dramatically as North American sales miss the mark. Today, we’ll talk about:
- The earnings report;
- what we’re seeing form TEVA as a result; and
- what we’ll be watching for ahead.
TEVA Announces Earnings
As mentioned above, Teva Pharmaceutical Industries is having a rough start to the trading session this morning after reporting its earnings for the second quarter. Here’s what we saw from the report:
- Revenue – Revenue proved to be a positive point of data on the earnings report with TEVA producing revenue in the amount of $4.7 billion. While that figure came in right in line with analyst expectations. While the figure did meet up with expectations, it represented a steep year over year decline from $5.7 billion
- Earnings – In terms of earnings, the company did overwhelmingly well. During the quarter, the company produced a net loss of $241 million, representing a loss of $0.24 per share. That figure not only beat FactSet estimates of a $0.64 loss, it blew away the year over year figure of a loss of $5.94 per share.
- North American Sales – While the report seemed positive, North American sales took a hit, upsetting investors. In fact, drug sales in North America, the company’s largest market, fell to $464 million, a 46% year over year decline.
- Guidance – Finally, the company said that in 2018, it expects to produce earnings in the range between $2.55 per share to $2.80 per share with revenues coming in between $18.5 million and $19 million.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to dig into the market is that the news causes moves. In the case of TEVA, the news proved to be negative. Sure earnings was positive, but a nearly 50% drop in sales in the company’s largest market is never a good thing. So, it comes as no surprise that upset investors are sending the stock tumbling down. As is normally the case, our partners at Trade Ideas were the first to alert us to the declines. Currently (8:10), TEVA is trading at $22.03 per share after a loss of $1.84 per share or 7.71% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on TEVA. In particular, we’re interested in following the story surrounding the company’s continued struggles with competition in North America and how they get over that hurdle. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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