Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA) reported results for the third quarter of 2017 today, missing the analysts' estimates and again lowering guidance. Teva's share price is down 11.5% in premarket trading on Wall Street.
The results were published one day after new CEO Kåre Schultz assumed office. It was the second quarter results published in August and consequent lowering of guidance that saw Teva's share price more than halved.
Teva reported third quarter revenue of $5.6 billion, up 1% from the third quarter of 2016. Excluding the impact of foreign exchange fluctuations, revenue increased 4%.
GAAP net profit and GAAP earnings per share were $530 million and $0.52, respectively, in the third quarter of 2017, compared with $348 million and $0.35, respectively, in the third quarter of 2016. Non-GAAP net profit and non-GAAP EPS were $1 billion and $1.00, respectively, in the third quarter of 2017, compared with $1.4 billion and $1.31 in the third quarter of 2016. The analysts' had forecast EPS of $1.04.
Copaxone sales in the third quarter were $987 million down 7% from $1.061 billion in the corresponding quarter of 2016.
Teva lowered its 2017 revenue forecast to $22.2-22.3 billion from $22.8-23.2 billion and expects $5.3-5.4 billion revenue in the fourth quarter. Non-GAAP EPS for 2017 has been lowered to $3.77-3.87 per share from $4.30-4.50. Expected Non-GAAP EPS in the fourth quarter is $0.70-0.80 per share.
Teva said that the lower expectations were due to: an earlier than expected, at-risk launch of a generic competitor to Copaxone 40 mg/mL, with an expected impact on EPS of approximately $0.30; lower than expected contribution from new generic launches in the US - Teva now projects approximately $400 million of revenues from new product launches in the year, compared to the previous projection of $500 million; increased price erosion and volume declines in US Generics business including increased competition to our largest product, the Concerta authorized generic; and lower cash flow from operations due to a reduction in net income and a delay in the resolution of its working capital dispute with Allergan, which is now scheduled to conclude in 2018.
Published by Globes [online], Israel business news - www.globes-online.com - on November 2, 2017
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