Teva Pharmaceutical Industries Ltd. (NYSE: TEVA) released its most recent quarterly report before the markets opened on Thursday. The pharma giant said that it had $0.94 in earnings per share (EPS) on $5.1 billion in revenue. Consensus estimates had called for $0.66 in EPS on $4.8 billion in revenue. The same period of last year had $1.06 in EPS on $5.63 billion in revenue.
Revenues from the North America segment in the first quarter of 2018 were $2.5 billion, a decrease of $709 million, or 22%, compared to last year, mainly due to adverse market dynamics in the U.S. generics market, a decline in Copaxone revenues due to generic competition and the loss of revenues from the sale of our women’s health business.
Separately, revenues from the Europe segment totaled $1.4 billion, an increase of $101 million or 8%. In local currency terms, revenues decreased by 6%, mainly due to the loss of revenues from the closure of its distribution business in Hungary and the sale of its women’s health business, partially offset by new generic product launches.
Finally, generic products revenues in the Growth Markets segment, which includes OTC products, were flat. In local currency terms, revenues decreased by 3%, mainly due to the effect of the deconsolidation of its subsidiaries in Venezuela.
In terms of guidance for the 2018 full year, the company now expects to see EPS in the range of $2.40 to $2.65 and revenues between $18.5 billion and $19.0 billion. The original guidance set in February called for $2.25 to $2.50 in EPS on $18.3 to $18.8 billion in revenue. The consensus estimates call for $2.47 in EPS on $18.7 billion in revenue.
On the books, Teva’s cash and cash equivalents totaled $1.42 billion at the end of the quarter, up from $963 million at the end of the previous fiscal year.
Kåre Schultz, Teva’s president and CEO, commented:
2018 is off to a solid start. Our restructuring program is proceeding well, and we are on track to meet our cost reduction targets of $1.5 billion in 2018 and $3.0 billion by the end of 2019. During this quarter, our strong cash flow allowed us to continue to reduce our outstanding debt, and together with our recent debt issuance and covenant amendment, has placed Teva on a more stable financial footing. We have also benefited this quarter from the durability of COPAXONE and a steady flow of generic launches in the U.S. Our strong first quarter performance, along with our confidence in executing the restructuring program, gives us a solid foundation to raise our guidance for the year.
Shares of Teva closed Wednesday at $18.60, with a consensus analyst price target of $19.33 and a 52-week range of $10.85 to $33.82. Following the announcement, the stock was up over 6% at $19.81 in early trading indications Thursday.