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Teva Beats Analysts on Second Quarter Operating Income, Revenues

Teva Beats Analysts on Second Quarter Operating Income, Revenues

The company also announced chief financial officer Michael McClellan will be stepping down after two years for personal reasons related to family

CTech  :  2019-08-07T15:31:20..
Israeli drugmaker Teva Pharmaceutical Industries Ltd. published its second quarter reports for 2019 on Wednesday, beating analyst expectations for its revenues and non-GAAP operating income, and reaffirmed the annual guidance it gave in its first quarter reports.

The company reported revenues of $4.3 billion, an 8% decrease year-over-year (but a 5% decrease in U.S. dollar terms). The analyst consensus was $4.264 billion. GAAP gross profit was $1.893 billion, a 7% drop year-over-year, and the non-GAAP gross profit was $2.188 billion, a 6% drop. Sales and marketing expenses were $621 million, compared to $634 million in the second quarter of 2018. General and administrative expenses were $286 million, down from $292 million.

Teva CEO Kåre Schultz. Photo: Sivan Farage Teva CEO Kåre Schultz. Photo: Sivan Farage Teva CEO Kåre Schultz. Photo: Sivan Farage

Teva ended the quarter with a non-GAAP operating income of $1.011, an 18% decrease year-over-year but above the analyst consensus of $978 million. EBITDA was $1.444 billion, above the analyst consensus of $1.139 billion.

The net loss attributable to ordinary shareholders, however, was $689 million for the quarter, compared to $241 in the second quarter of 2018. Non-GAAP net income for the quarter was $653 million, or $0.60 diluted EPS, compared to $794 million and $0.78. The analyst consensus was $0.57.

Copaxone sales dropped 41% year-over-year in North America to $274 million. In Europe, they dropped 24% to $107. Teva attributes the fall in revenues to increased generic competition.

As of June 30, 2019, Teva’s debt stood at $28.726 billion, up from $28.624 billion in the first quarter of 2019, an increase Teva attributed mainly to exchange rates fluctuations.

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Teva reaffirmed the annual guidance it provided in the first quarter of 2019, of revenues in the range of $17 billion to $17.4 billion and EPS of $2.2-$2.5.

Separately, Teva announced chief financial officer Michael McClellan will be stepping down after two years for personal reasons related to family. McClellan will be staying until the third quarter reports are published to ensure a smooth transition, the company stated, and the search for a replacement is already underway.

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