Teva Pharmaceutical Industries Ltd. (NYSE: TEVA) remains stuck after its earnings report. The generic and branded pharmaceutical drug maker turned in higher earnings that only met expectations. The company claims to be on track to reach its financial goals for the year, as the U.S. generics business continues to recover with a positive trend. It was also noted that the global branded division experienced strong growth, and that, despite the woes of Europe, the European generics business showed solid sequential growth from the first quarter, even if it was down from a year ago.
Teva reported earnings of $1.28 per share, versus $1.10 a year ago, on a 19% gain in sales to $5.0 billion. Thomson Reuters had estimates of $1.28 per share but revenue estimates were $5.08 billion. The company reaffirmed its 2012 targets of $20 billion to $21 billion with earnings (ex-items) of $5.30 to $5.40 per share.
U.S. sales were up 28% to $2.5 billion after launching new generics and branded products, while European sales were effectively unchanged at $1.5 billion.
Rather than looking at individual drug franchise sales, the reaction pretty much sums it up. The reaction in New York has shares down 1.5% at $40.25. The consensus analyst target was $50.50 before the effects of this earnings report came out. Shares were down only about 1% in Tel Aviv on last look.
JON C. OGG