Why Teva Pharmaceutical Industries Ltd (ADR) (TEVA) Shares Sink Today

Investors continue to dump shares of Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVA) after the pharmaceutical giant reported lower-than-expected second-quarter earnings. Specifically, Teva reported revenues of $5.69 billion and non-GAAP EPS of $1.02, compared to consensus estimates of $5.72 billion and $1.06, respectively.

In addition, Teva cut its previous guidance of $23.8-$24.5 billion in revenues and EPS of $4.90-$5.30 to $22.8-$23.2 billion and $4.30- $4.50, respectively.

Furthermore, Teva cut its dividend to $0.085 from $0.34 in 1Q:17, and took a $6.1 billion goodwill impairment.

Shares of Teva are currently trading at $25.65, down $5.60 or -17.92%. TEVA has a 1-year high of $55.79 and a 1-year low of $27.60. The stock’s 50-day moving average is $32.08 and its 200-day moving average is $32.27.

Mizuho analyst Irina Rivkind Koffler commented, “The weakness was attributed to a number of factors in the generics business including pricing pressure, decreased volumes, competition, and delayed launches. Additionally, weakness in Venezuela was also mentioned and we note that the company previously estimated a $500M contribution from Venezuela in 2017 […] Better than expected Copaxone performance ($1,023M vs. $955M consensus) continues to support the stock but these revenues are not durable, in our view.”

According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Irina Rivkind Koffler has a yearly average return of 17.2%. Koffler has a success rate of 52% and is ranked #156 out of 4625 analysts.

Overall, 7 research analysts have assigned a Hold rating and 4 research analysts have given a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $31.50 which is 0.8% above where the stock closed yesterday.

Teva Pharmaceutical Industries Ltd. engages in the provision of pharmaceutical services. It operates through the following two segments: Generic and Specialty Medicine. The Generic segment includes chemical and therapeutic equivalents of originator medicines in a variety of dosage forms, including tablets, capsules, injectables, inhalants, liquids, ointments and creams. The Specialty Medicine segment includes several franchises, most significantly core therapeutic areas of CNS medicines. 

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