Teva Q3 Profit Misses View, Cuts 2017 Outlook; Stock Down

(RTTNews) - Teva Pharmaceutical Industries Ltd. (TEVA) reported that its profit for the third quarter ended September 30, 2017 increased about 52 percent from last year. The company cut its 2017 outlook.

In the Thursday's pre-market trade, TEVA is trading at $13.20 down $0.83 or 5.93%.

GAAP net income attributable to ordinary shareholders for the third-quarter of 2017 rose to $530 million or $0.52 per share from $348 million or $0.35 per share in the third quarter of 2016.

Non-GAAP net income attributable to ordinary shareholders for the quarter were $1.0 billion or $1.00 per share, compared to $1.4 billion or $1.31 per share in the third quarter of 2016. Analysts polled by Thomson Reuters expected the company to report earnings of $1.04 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues in the third quarter of 2017 were $5.61 billion, up 1% compared to the third quarter of 2016. Excluding the impact of foreign exchange fluctuations, revenues increased 4%. Wall Street expected revenues of $5.62 billion.

For the fourth-quarter, the company projects non-GAAP earnings per share to be in the range of $0.70-0.80, and revenues of $5.3 billion- $5.4 billion. Analysts expect the company to report earnings of $1.07 per share and revenues of $5.69 billion for the fourth-quarter.

Looking ahead for 2017, the company now expects non-GAAP earnings per share to be in the range of$3.77- $3.87, and revenues of $22.2 billion- $22.3 billion. Previously, the expected annual non-GAAP earnings per share to be in the range of $4.30-$4.50, and revenues of $22.8 billion- $23.2 billion.

Wall Street currently is looking for fiscal year 2017 earnings of $4.19 per share on annual revenues of $22.62 billion.

The company noted that its 2017 financial outlook was lowered to reflect an earlier than expected, at-risk launch of a generic competitor to Copaxone 40 mg/mL, with an expected impact on EPS of approximately 30 cents; and lower than expected contribution from new generic launches in the U.S. It now projects approximately $400 million of revenues from new product launches in the year, compared to the previous projection of $500 million; and Increased price erosion and volume declines in our U.S. Generics business including increased competition to largest product, the Concerta authorized generic; and Lower cash flow from operations due to a reduction in net income and a delay in the resolution of working capital dispute with Allergan, which is now scheduled to conclude in 2018.