Teva Ups Guidance on Third Quarter Results

On Thursday, Teva Pharmaceutical Industries Ltd. published its third quarter results for 2018, reporting revenues of $4.5 billion, down from $4.7 billion in the second quarter of the year, and down 19.6% from the $5.6 billion it reported for the third quarter of 2017. The company attributed the decrease to price erosion in its U.S. generic business and generic competition to its multiple sclerosis drug Copaxone.

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Teva is up by as much as 1.11% on NYSE in pre-market trading.

Due to its heavy debt, accrued as a result of a series of ill-fated business decisions, Teva announced an asset divestment and layoffs-heavy reorganization plan in December 2017 with the intention of cutting the company’s cost base by $3 billion by the end of 2019. The company reduced its spend base by $1.8 billion in the first nine months of 2018 and is on track to meet its goal, Teva said in a statement Thursday. .

Teva’s debt stood at $29,489 million as of September 30. The company’s portion of total debt classified as short-term was 9%, compared to 4% at the end of the second quarter of 2018.

Teva’s GAAP gross profit for the third quarter was $2.021 billion, a 24% decrease year-over-year, and down from $2.1 billion in the second quarter of 2018. Non-GAAP gross profit was $2.3 billion, a 23% decrease year-over-year, and down from $2.4 billion in the second quarter of 2018.

GAAP loss per share (diluted) was $0.27 for the second quarter, compared to earnings per share of $0.52 in the same period of 2017, and down from $0.24 for the second quarter of 2018. Non-GAAP diluted earnings per share were $0.68, down from $0.78 in the second quarter of 2018. Teva raised its non-GAAP EPS guidance for 2018 from $2.55-$2.80 to $2.80-$2.95 and its annual free cash flow guidance from $3.2-$3.4 billion to $3.6-$3.8 billion.