Teva's sales and earnings down, but not as much as expected

Israel’s Teva Pharmaceutical Industries (NYSE: TEVA) today reported financial results for the second quarter of 2019, posting revenues of $4,337 million, a decrease of 8%, or 5% in local currency terms, compared to the like quarter of 2018, mainly due to generic competition to Copaxone (glatiramer acetate), its top-selling multiple sclerosis drug. However, group sales beat consensus estimates of a 10% decline to $4.25 billion.

On a generally accepted accounting principles (GAAP) basis, gross profit was $1,893 million in the second quarter, down 7%. Non-GAAP gross profit was $2,188 million, a decline of 6%. GAAP diluted loss per share of $0.63, with non-GAAP diluted EPS of $0.60, compared with consensus estimates which suggested earnings would fall 27% to just $0.57 per share.

Shares of Teva, the world’s largest generic drugmaker, tumbled nearly 10% to $7.06 by close of New York trading on Tuesday, ahead of the results release, as investors are even more apprehensive than usual. They were down 5.26% at 2,500 shekels in late afternoon trading in Tel Aviv today. Pre-market in New York, the stock gained 0.99% to $7.13 in reaction to better-than-expected figures.