Teva Pharmaceutical Industries Beats Analyst Estimates on EPS

Teva Pharmaceutical Industries (NAS: TEVA) reported earnings on May 9. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Teva Pharmaceutical Industries missed estimates on revenue and beat slightly on earnings per share.

Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share increased significantly.

Margins shrank across the board.

Revenue details
Teva Pharmaceutical Industries chalked up revenue of $5.10 billion. The 20 analysts polled by S&P Capital IQ expected net sales of $5.51 billion on the same basis. GAAP reported sales were 25% higher than the prior-year quarter's $4.08 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $1.47. The 24 earnings estimates compiled by S&P Capital IQ averaged $1.44 per share. GAAP EPS of $0.97 for Q1 were 15% higher than the prior-year quarter's $0.84 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 51.1%, 280 basis points worse than the prior-year quarter. Operating margin was 21.1%, 110 basis points worse than the prior-year quarter. Net margin was 16.8%, 190 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $5.41 billion. On the bottom line, the average EPS estimate is $1.35.

Next year's average estimate for revenue is $21.92 billion. The average EPS estimate is $5.61.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 2,475 members out of 2,543 rating the stock outperform, and 68 members rating it underperform. Among 550 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 545 give Teva Pharmaceutical Industries a green thumbs-up, and five give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Teva Pharmaceutical Industries is outperform, with an average price target of $53.48.

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