Teva Pharmaceutical Industries Ltd. (NYSE: TEVA) released its most recent earnings report before the markets opened on Thursday. The pharma giant said that it had $0.68 in earnings per share (EPS) and $4.5 billion in revenue, while Thomson Reuters consensus estimates had called for $0.54 in EPS and revenue of $4.53 billion. The third quarter from last year reportedly had EPS of $1.00 on $5.61 billion in revenue.
The firm saw a revenue drop year over year, mainly due to generic competition to Copaxone, price erosion in its U.S. generics business and loss of revenues following the divestment of certain products and discontinuation of certain activities.
Looking ahead to the 2018 full year, the company expects to see EPS in the range of $2.80 to $2.95 and free cash flow of $3.6 billion to $3.8 billion. This is up from previous estimates of $2.55 to $2.80 in EPS and $3.2 billion to $3.4 billion in free cash flow.
Consensus estimates call for $2.78 in EPS and $18.86 billion in revenue for the full year.
Kåre Schultz, Teva’s president and CEO, commented:
I am very satisfied with our progress and we are meeting all our key targets. We received FDA approval for Aiovy in September for the preventive treatment of migraine and we are seeing very good signs of a successful launch. We continue to see strong growth for Austedo, while Copaxone continues to maintain its market share. Our restructuring plan has already resulted in a significant cost reduction of $1.8 billion in the first nine months of the year and we are on track to achieve a reduction of $3.0 billion by the end of 2019, while continuing to pay down our debt. Given the solid third quarter results, we have decided to raise our 2018 full year guidance.
Shares of Teva traded up more than 9% early Thursday at $21.86, in a 52-week range of $10.85 to $25.96. The stock’s consensus analyst price target is $21.53.