Teva Cuts Revenue Forecast for Year

It was revealed on Thursday that Teva Pharmaceuticals TEVA has cut its earnings and revenue forecast. Worryingly, the new numbers came in below analyst expectations. TEVA said that it is now expecting non-GAAP earnings per share between $5.30 and $5.40 for this full year, ending December 31. Before the revision, the range was $5.48 to $5.68. Analysts polled by Reuters were expecting earnings of $5.59 per share for the full year. In addition, the total net sales forecast has now been set at $20 billion to $21 billion. Previously, the forecast sat at $22 billion, while analysts were expecting $21.27 billion. The company comes to the forecast by taking U.S. net sales of $10.5 billion, European net sales of $5.8 billion, and sales from everywhere else of $4.2 billion. CEO Jeremy Levin said this week that profit and revenue are being hit by a weak Europe. Earlier in May, Teva said that 1Q profit grew roughly 13% from the previous year. At that time, then-CEO Shlomo Yanai said, "2012 is off to a good start for Teva. We enjoyed a quarter of strong growth for our branded products, in our US generics business, and in the developing markets Teva operates in. All of these served to offset weaker generics sales in Europe, which resulted primarily from the macro-economic conditions in that region." Thursday sees Teva trading at $39.87, which is up $1.29 or 3.34%.