UPDATE: Teva Posts Stronger-Than-Expected Q3 Profit, Lifts Forecast

Teva Pharmaceutical Industries TEVA reported better-than-expected third-quarter profit and lifted its earnings outlook for the full year. The Petach Tikva, Israel-based company posted quarterly net income of $876 million, or $1.02 per share, up from $711 million, or $0.84 per share, in the year-ago period. Excluding one-time items, the company's earnings rose to $1.32 per share from $1.27 per share. Its revenue came in unchanged at $5.1 billion. However, analysts were expecting earnings of $1.24 per share excluding items on revenue of $5.08 billion. Generic medicine revenue fell 2% to $2.4 billion, while specialty medicine revenue rose 5% to $2.2 billion in the quarter. Teva's global sales of its drug Copaxone gained 5% to $1.1 billion. Research and Development expenditures rose to $360 million from $348 million. Teva also declared a quarterly dividend of 1.21 shekels (32 cents) per share and raised its buyback plans to $3 billion. “The effort we have put forth thus far in 2014 towards solidifying our foundation to drive organic growth is reflected in our strong third quarter results. We delivered improvement in profitability in all businesses, particularly in global generics, which saw profitability increase by 40% year over year. The quarter results are an important example of Teva's commitment to strengthen our global leadership position in generics, fully execute our cost reduction program, and focus on cash and cash flow generation,” stated Erez Vigodman, President & CEO of Teva. Teva now expects full-year earnings of $5.00 to $5.10 per share, versus its prior forecast of $4.90 to $5.10 per share. It also expects revenue of $20 to $20.3 billion, versus a prior outlook of $19.9 to $20.8 billion. Teva shares fell 0.91% to $54.30 in pre-market trading.