NYSE$TEVA

Teva Pharmaceutical Industries ADR · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

Reported earnings for the quarter and year ended December 31, 2019.

Teva Pharmaceutical Industries Ltd. reported Q4 2019 results with revenues of $4.5 billion, a 1% increase compared to Q4 2018. GAAP earnings per share was $0.10 and non-GAAP EPS was $0.62. The company saw growth in sales of AUSTEDO, AJOVY, and certain respiratory products, which was partially offset by lower revenues from COPAXONE in North America.

  • Completed two-year restructuring plan.
  • Reduced cost base by more than $3 billion.
  • Reduced net debt by more than $9 billion.
  • Key growth products met major milestones, including the launch of AJOVY in Europe, continued strong growth for AUSTEDO, and the successful launch of Teva's first biosimilar TRUXIMA in North America.

Headline financials

Total Revenue

$4.47B

Previous: $4.56B-2.0%
EPS (adj)

$0.62

Previous: $0.53+17.0%
Free Cash Flow

$974M

No prior period
Capital Expenditures

$119M

Previous: $213M-44.1%
Net Income

$75M

Previous: -$2.89B+102.6%
Operating Income

$148M

Previous: -$3.16B+104.7%
Gross Profit

$1.96B

Previous: $1.97B-0.7%
Cash & Equivalents

$1.98B

Previous: $1.78B+10.8%
Total Assets

$57.5B

Previous: $60.7B-5.3%
Stock-Based Comp

$20M

Previous: $33M-39.4%

Revenue & EPS history

Teva · Revenue · Quarterly

$4.47B

Q4 2019-2%vs Q4 2018
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

Teva · $1.76B total across 2 segments · Q4 2019

  • Europe
    $1.18B
  • International Markets
    $578M

Forward guidance

Teva provided its outlook for 2020, expecting revenues between $16.6 to $17.0 billion, Non-GAAP Operating Income between $4.0 to $4.4 billion, EBITDA between $4.5 to $4.9 billion, Non-GAAP EPS between $2.30 to $2.55, and Free cash flow between $1.8 to $2.2 billion.

Tailwinds

  • Continued generic erosion; sales of approximately $1.2 billion from Global COPAXONE
  • Continued increase in the U.S. sales to approximately $650 million from AUSTEDO
  • Continued increase in sales to approximately $250 million from Global AJOVY
  • Tax Rate 17% - 18%
  • Moderate negative impact on revenues and operating income compared to 2019 from Foreign Exchange

Headwinds

  • Global COPAXONE Continued generic erosion
  • AUSTEDO Continued increase in the U.S. sales
  • Global AJOVY Continued increase in sales
  • Foreign Exchange Moderate negative impact on revenues and operating income compared to 2019
  • CAPEX $0.6 billion

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2019

Historical avgQ4 2019

+0.3%

Avg return

Earnings day

+1.6%

Avg return

5 days after

+0.7%

Avg return

30 days after

51%

38 / 74 earnings

Positive

+27.1%

Q2 2022

Best reaction

-34.1%

Q2 2017

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.1%+11.9%+11.7%
Q4 2025+2.1%+9.2%+4.1%
Q3 2025+20.4%+18.6%+39.1%
Q2 2025+1.8%-5.1%+11.1%
Q1 2025+8.9%+11.4%+10.2%
Q4 2024-13.9%-19.4%-23.5%
Q3 2024-6.8%-7.5%-7.7%
Q2 2024+6.9%+1.6%+15.0%
Q1 2024+14.7%+21.0%+20.6%
Q4 2023+6.2%+5.5%+15.1%
Q3 2023-3.0%-2.4%+8.6%
Q2 2023+15.4%+16.2%+18.7%
Q1 2023-9.8%-11.3%-19.5%
Q4 2022-9.8%-5.4%-16.3%
Q3 2022-3.3%+3.7%-1.1%
Q2 2022+27.1%+30.5%+37.6%
Q1 2022-2.3%-8.1%+11.6%
Q4 2021+6.3%+2.8%-9.8%
Q3 2021-7.0%-1.7%-9.6%
Q2 2021+8.6%+10.4%+4.8%
Q1 2021+2.6%+4.2%+0.3%
Q4 2020-11.8%-13.2%-15.8%
Q3 2020-1.0%+4.5%+11.6%
Q2 2020+3.0%+0.6%-22.1%
Q1 2020+7.7%+9.0%+22.5%
Q4 2019+1.9%-0.9%-31.9%
Q3 2019+14.8%+18.6%+22.5%
Q2 2019+3.3%-0.6%-0.7%
Q1 2019-0.3%-4.1%-43.2%
Q4 2018-9.6%-6.0%-13.7%
Q3 2018+13.1%+15.6%+7.8%
Q2 2018-7.1%-2.5%-4.0%
Q1 2018-4.1%+1.6%+17.7%
Q4 2017-10.7%-11.2%-8.0%
Q3 2017-18.7%-16.6%+8.8%
Q2 2017-34.1%-16.2%-39.4%
Q1 2017+1.7%+1.3%-3.6%
Q4 2016+8.4%+9.4%+6.7%
Q3 2016-7.2%-6.0%-10.5%
Q2 2016+1.2%-6.2%-8.8%
Q1 2016+5.2%+1.7%+10.8%
Q4 2015-2.0%
Q3 2015-5.1%
Q2 2015-2.6%
Q1 2015+0.1%
Q3 2014+3.6%
Q4 2014+2.0%
Q2 2014-1.6%
Q1 2014+2.0%
Q4 2013-1.9%
Q3 2013-1.5%
Q2 2013-2.0%
Q1 2013+1.0%
Q4 2012+1.4%
Q3 2012+2.6%
Q2 2012-3.3%
Q1 2012-5.4%
Q4 2011+2.5%
Q3 2011+7.0%
Q2 2011+1.9%
Q1 2011+5.6%
Q4 2010+0.4%
Q3 2010+0.3%
Q2 2010-3.4%
Q1 2010+0.9%
Q4 2007+1.2%
Q4 2009+1.2%
Q3 2008-1.4%
Q3 2009-1.4%
Q2 2008-0.8%
Q2 2009-0.8%
Q1 2009-0.6%
Q1 2008-0.6%
Q4 2008-0.6%

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