Teva Pharmaceutical Industries Increases Sales but Misses Revenue Estimate

Seth Jayson, The Motley Fool
Updated

Teva Pharmaceutical Industries (NYS: TEVA) reported earnings on Aug. 2. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 30 (Q2), Teva Pharmaceutical Industries missed slightly on revenues and met expectations on earnings per share.

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


Margins expanded across the board.

Revenue details
Teva Pharmaceutical Industries reported revenue of $4.99 billion. The 20 analysts polled by S&P Capital IQ predicted a top line of $5.08 billion on the same basis. GAAP reported sales were 19% higher than the prior-year quarter's $4.21 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 $1.28. The 26 earnings estimates compiled by S&P Capital IQ forecast $1.28 per share. GAAP EPS of $0.99 for Q2 were 55% higher than the prior-year quarter's $0.64 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 53.2%, 100 basis points better than the prior-year quarter. Operating margin was 21.3%, 70 basis points better than the prior-year quarter. Net margin was 17.3%, 360 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $5.14 billion. On the bottom line, the average EPS estimate is $1.29.

Next year's average estimate for revenue is $20.58 billion. The average EPS estimate is $5.38.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 2,484 members out of 2,553 rating the stock outperform, and 69 members rating it underperform. Among 518 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 513 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 $50.80.

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The article Teva Pharmaceutical Industries Increases Sales but Misses Revenue Estimate originally appeared on Fool.com.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. Motley Fool newsletter services recommend Teva Pharmaceutical Industries. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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