Teva Stock Falls After COVID-19 Impacts Q2 Top And Bottomline; Lowers FY21 Outlook

Teva Stock Falls After COVID-19 Impacts Q2 Top And Bottomline; Lowers FY21 Outlook
  • Teva Pharmaceutical Industries Ltd TEVA Q2 sales reached $3.9 billion, increasing 1% Y/Y or decreasing 2% in local currency terms, missing the consensus of $4.04 billion.
  • The decrease was mainly due to lower revenues in the North America segment, related primarily to Copaxone and Anda. 
  • Revenues were also affected by changes in demand for certain products resulting from the impact of the COVID-19 pandemic.
  • Adjusted EPS of $0.59 came in line with expectations.
  • The adjusted gross margin improved to 53.3% from 52% a year ago. Adjusted operating income reached little above $1 billion, +6% Y/Y mainly due to higher profit in our Europe segment.
  • Adjusted EBITDA increased 5% to $1.2 billion.
  • Teva generated an operating cash flow of $218 million, with a free cash flow of $625 million.
  • Outlook: Teva lowered the FY21 revenue outlook to reflect the ongoing impact of COVID-19. It expects revenues of $16 billion - $16.4 billion vs. $16.4 - $16.8 billion prior, lower than the consensus of $16.5 billion.
  • It sees adjusted EPS of $2.50 - $2.70 vs. the consensus of $2.45.
  • It expects a $2.0 - $2.3 billion free cash flow and an adjusted EBITDA of $4.8 - $5.1 billion.
  • Price Action: TEVA shares are down 1.35% at $8.80 during the premarket session on the last check Wednesday.
Posted In: BriefsBiotechEarningsNewsGuidanceHealth CareMoversTrading IdeasGeneral