Despite the company missing on earnings per share in the third quarter, investors seem encouraged by revised annual guidance.
Despite the company narrowly missing the consensus earnings estimate for the third quarter of 2019, Teva Pharmaceutical Industries Ltd.'s (NYSE: TEVA; TASE: TEVA) share price is soaring in New York, and is currently up by nearly 11.3%, following a 5.88% rise in Tel Aviv by toady's close. The reason appears to be improved guidance and upbeat remarks by CEO Kare Schultz.
Teva has narrowed its annual revenue guidance, in effect raising it, from $17-17.4 billion to $17.2-17.4 billion. The consensus estimate is currently $17.18 billion. Guidance for cash flow from operations guidance moves from $3.8-4.2 billion to $4-4.2 billion. Its guidance for EBITDA is now $4.5-4.8 billion instead of $4.4-4.8 billion, and for earnings per share it is $2.3-2.5 instead of $2.2-2.5. Free cash flow is forecast to be $1.7 billion instead of $1.6 billion.
A further positive development is that Teva unit Teva Pharmaceuticals USA, Inc., and South Korean company Celltrion Healthcare, Co., Ltd. (KRX KOSDAQ:091990) have announced that Truxima injection is the first biosimilar to Rituxan (rituximab) for the treatment of adult patients with non-Hodgkin’s Lymphoma and Chronic Lymphocytic Leukemia to be available in the US.
Published by Globes, Israel business news - en.globes.co.il - on November 7, 2019
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