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Teva share price has declined 11.17% this year so far compared with the industry’s decrease of 10.3%.
Teva’s earnings performance has been mixed, with the company beating expectations in two of the past four quarters, matching estimates in one and missing the same in the remaining quarter. The four-quarter average earnings surprise is 8.33%.
Factors to Consider
In the third quarter, Teva’s branded drug sales are expected to have been hurt by generic erosion in sales of Copaxone and lower sales of Bendeka/Treanda. However, its new branded drug Austedo is expected to have provided top-line support like in the past few quarters.
Meanwhile, sales of its new CGRP, Ajovy improved in the second quarter from the prior-quarter levels led by higher volumes and the launch of Teva’s auto injector device for Ajovy in April. We expect the positive trend to have continued in the third quarter.
The Zacks Consensus Estimate for sales of Ajovy and Austedo in North America is $40.2 million and $175 million, respectively.
Teva’s new generic product launches including Truxima (biosimilar versions of Roche’s cancer drug Rituxan) and Herzuma, (biosimilar to Roche’s Herceptin) and generic equivalents of Mylan’s EpiPen and EpiPen Jr are likely to have boosted sales of its Generics unit. However, in the second quarter, lower volume and lower royalty income hurt Generic segment sales. It remains to be seen of the trend continued in the third quarter when the company reports.
The Zacks Consensus Estimate for sales of Copaxone and Generic Products in North America is $203 million and $961 million, respectively/
Importantly, on the company’s third-quarter earnings call, investors will also focus on whether Teva makes any changes to its business outlook for 2020 to include the updated impact of coronavirus.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for Teva this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here.
Earnings ESP: Its Earnings ESP is -1.16% as the Zacks Consensus Estimate stands at 58 cents per share while the Most Accurate Estimate is 57 cents per share. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here are some biotech stocks that have the right combination of elements to beat on earnings this time around:
BioNTech (BNTX - Free Report) has an Earnings ESP of +21.7% and a Zacks Rank #3.
ACADIA Pharmaceuticals (ACAD - Free Report) has an Earnings ESP of +3.69% and holds a Zacks Rank of 3.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for regular investors who make the right trades early.
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TEVA Gears Up to Report Q3 Earnings: What's in the Cards?
Teva Pharmaceutical Industries Limited (TEVA - Free Report) is scheduled to report third-quarter 2020 results on Nov 5, before market open.
In the last reported quarter, the company delivered an earnings beat of 7.84%.
Teva Pharmaceutical Industries Ltd. Price and EPS Surprise
Teva Pharmaceutical Industries Ltd. price-eps-surprise | Teva Pharmaceutical Industries Ltd. Quote
Teva share price has declined 11.17% this year so far compared with the industry’s decrease of 10.3%.Teva’s earnings performance has been mixed, with the company beating expectations in two of the past four quarters, matching estimates in one and missing the same in the remaining quarter. The four-quarter average earnings surprise is 8.33%.
Factors to Consider
In the third quarter, Teva’s branded drug sales are expected to have been hurt by generic erosion in sales of Copaxone and lower sales of Bendeka/Treanda. However, its new branded drug Austedo is expected to have provided top-line support like in the past few quarters.
Meanwhile, sales of its new CGRP, Ajovy improved in the second quarter from the prior-quarter levels led by higher volumes and the launch of Teva’s auto injector device for Ajovy in April. We expect the positive trend to have continued in the third quarter.
The Zacks Consensus Estimate for sales of Ajovy and Austedo in North America is $40.2 million and $175 million, respectively.
Teva’s new generic product launches including Truxima (biosimilar versions of Roche’s cancer drug Rituxan) and Herzuma, (biosimilar to Roche’s Herceptin) and generic equivalents of Mylan’s EpiPen and EpiPen Jr are likely to have boosted sales of its Generics unit. However, in the second quarter, lower volume and lower royalty income hurt Generic segment sales. It remains to be seen of the trend continued in the third quarter when the company reports.
The Zacks Consensus Estimate for sales of Copaxone and Generic Products in North America is $203 million and $961 million, respectively/
Importantly, on the company’s third-quarter earnings call, investors will also focus on whether Teva makes any changes to its business outlook for 2020 to include the updated impact of coronavirus.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for Teva this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here.
Earnings ESP: Its Earnings ESP is -1.16% as the Zacks Consensus Estimate stands at 58 cents per share while the Most Accurate Estimate is 57 cents per share. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Teva currently carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to Consider
Here are some biotech stocks that have the right combination of elements to beat on earnings this time around:
BioNTech (BNTX - Free Report) has an Earnings ESP of +21.7% and a Zacks Rank #3.
ACADIA Pharmaceuticals (ACAD - Free Report) has an Earnings ESP of +3.69% and holds a Zacks Rank of 3.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>