Teva Pharmaceuticals' 1Q Adjusted Results Exceed Expectations

Teva Pharmaceutical Industries Ltd

reported 42.6% jump in net income to $633 million from $444 million in the year-ago quarter. Similarly, its earnings grew 19.2% to $0.62 a share from $0.52 a share in the corresponding quarter last year. On an adjusted basis, Teva's net earnings fell 5.1% to $1.11 billion from $1.17 billion while earnings fell 11.8% to $1.20 a share from $1.36 a share in the previous year quarter. That was $0.03 a share higher than the Street analysts' expectations. The pharmaceutical firm's top line fell 3.4% to $4.81 billion from $4.98 billion in the same quarter last year. This was also better than the Street analysts' predictions of $4.77 billion. Teva's President and CEO. Erez Vigodman, said that "We start 2016 with solid performance across the business, strong financial results and the achievement of several key milestones. Generics remains a core contributor to our performance despite no major launches in the U.S. this quarter as we had in the first quarter 2015 with continuous operational and financial improvement across the business. We finalized our acquisition of Rimsa and completed the business venture in Japan with Takeda. We continue to make important progress in our specialty business where we see great promise." He continued to say that "Looking forward, we have several upcoming approvals and key clinical milestones in our pipeline and of course the much anticipated close of Actavis Generics. We are excited to be in the final stages of completing the acquisition of Actavis Generics, which will enable us to further realize the enormous potential in the growing global generics universe and deliver the benefits of this transaction to our stockholders, customers, patients and healthcare systems around the world." Moving ahead, Teva said that it expects adjusted earnings to be $1.16 - $1.20 a share on revenues of $4.7 - $4.9 billion for the second quarter. Street analysts' estimates the company to deliver earnings of $1.18 a share on revenue of $4.88 billion. Shares of the company shed 6.7% on Friday.