Teva shares slump premarket after earnings fall short of estimates
Teva Pharmaceuticals Inc. swung to a profit in the third quarter, although profit and revenue fell below Wall Street estimates. The Israeli generics company posted net income of $292 million, or 26 cents a share, for the quarter, after a loss of $4.349 billion, or $3.97 a share, in the year-earlier period. Adjusted per-share earnings came to 59 cents, below the 64 cents FactSet consensus. Revenue fell 2% to $3.887 billion, also missing the FactSet consensus of $4.03 billion. "This decrease was mainly due to lower revenues in our North America segment, mainly due to COPAXONE and generic products, partially offset by higher revenues from generic and OTC products in our Europe segment, AJOVY and AUSTED,' the company said in a statement. "Revenues continued to be affected by the ongoing impact of the COVID-19 pandemic on markets and on customer stocking and purchasing patterns." The company announced that is launching a $4 billion Sustainability-Linked Bond (SLB) today, which CEO Kåre Schultz said would help secure access to medicines in low and middle-income countries. Schultz said Teva is the first generics company to offer an SLB. Shares were down 0.4% premarket and are down 2.7% in the year through Tuesday's close, while the S&P 500 has gained 22%.
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