Teva shares slide 3% premarket as company swings to a loss and revenue falls
Teva Pharmaceutical Industries Ltd. shares
TEVA,
slid 3% in premarket trade Tuesday, after the generics company swung to a loss in the first quarter as revenue fell. Tel Aviv-based Teva posted a net loss of $955 million, or 86 cents a share, for the quarter, after net income of $77 million, or 7 cents a share, in the year-earlier period. Adjusted per-share earnings excluding legal costs of $1.124 billion, goodwill impairments of $165 million and amortization of intangible assets of $200 million among other items, came to 55 cents, ahead of the 53 cent FactSet consensus. Revenue fell to $3.661 billion from $3.982 billion a year ago, also ahead of the $3.598 billion FactSet consensus. Sales of MS treatment Copaxone came to about $750 million, below guidance of about $850 million. “While easing of COVID-19 related restrictions has led to positive momentum in our European business, we are seeing fluctuations of foreign exchange rates, and have therefore lowered our 2022 revenue outlook, while reaffirming our earnings and cash flow guidance,” CEO Kåre Schultz said in a statement. The company is still expecting full-year EPS of $2.40 to $2.60, but now expects revenue of $15.4 billion to $16.0 billion, down from prior guidance of $15.6 billion to $16.2 billion. Shares have gained 6.5% in the year to date, while the S&P 500
SPX,
has fallen 13%.