Teva Q1 Profit Rises, Beats View; But Revenue Misses - Quick Facts

(RTTNews) - Teva Pharmaceutical Industries Ltd. (TEVA) on Thursday reported an increase in profit for the first quarter from last year on higher revenues.

Adjusted earnings per share for the quarter beat analysts' estimates, while revenues missed their expectations. Looking ahead, the company reiterated its financial outlook for fiscal 2017.

The company's first-quarter net income attributable to ordinary shareholders of $580 million or $0.57 per share, compared to $570 million or $0.62 per share in the prior-year quarter.

Adjusted net income attributable to ordinary shareholders was $1.08 billion or $1.06 per share, compared to $1.17 billion or $1.20 per share in the year-ago quarter.

On average, 20 analysts polled by Thomson Reuters expected the company to report profit per share of $1.03 for the quarter. Analysts' estimates typically exclude special items.

Revenues for the quarter were $5.63 billion, up 17% from $4.81 billion in prior-year quarter, primarily due to the inclusion of the results of the Actavis Generics business. Analysts expected revenue of $5.68 billion for the quarter.

Dr. Yitzhak Peterburg, Interim Chief Executive Officer said, "We are pleased that the transaction synergies and additional cost reductions are on track, and we now expect to realize cumulative net synergies and cost reduction of approximately $1.5 billion by the end of 2017, an increase of $200 million compared to our previous guidance. Notably, we have reduced our gross debt by $1.2 billion in the quarter."

The company also said it is pursuing the sale of certain non-core assets, including its global Women's Health business and Oncology and Pain business in Europe, to pay down debt.

Looking ahead, Teva reaffirmed its 2017 full year outlook.

On May 10, 2017, the company's board of directors declared a cash dividend of $0.34 per ordinary share for the first quarter of 2017.The record date will be June 5, 2017, and the payment date will be June 22, 2017.

The board also declared a cash dividend of $17.50 per mandatory convertible preferred share for the first quarter of 2017. The record date will be June 1, 2017 and the payment date will be June 15, 2017.