Teva Ups Guidance on Third Quarter Results
Teva reported revenues of $4.5 billion for the quarter, down from $4.7 billion in the second quarter of 2018, and a 19.6% decrease year-over-year
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Teva is up by as much as 1.11% on NYSE in pre-market trading.
Teva CEO Kåre Schultz. Photo: Yuval Chen
Due to its heavy debt, accrued as a result of a series of ill-fated business decisions, Teva announced an asset divestment and layoffs-heavy reorganization plan in December 2017 with the intention of cutting the company’s cost base by $3 billion by the end of 2019. The company reduced its spend base by $1.8 billion in the first nine months of 2018 and is on track to meet its goal, Teva said in a statement Thursday. .
Teva’s debt stood at $29,489 million as of September 30. The company’s portion of total debt classified as short-term was 9%, compared to 4% at the end of the second quarter of 2018.
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Teva’s GAAP gross profit for the third quarter was $2.021 billion, a 24% decrease year-over-year, and down from $2.1 billion in the second quarter of 2018. Non-GAAP gross profit was $2.3 billion, a 23% decrease year-over-year, and down from $2.4 billion in the second quarter of 2018.
GAAP loss per share (diluted) was $0.27 for the second quarter, compared to earnings per share of $0.52 in the same period of 2017, and down from $0.24 for the second quarter of 2018. Non-GAAP diluted earnings per share were $0.68, down from $0.78 in the second quarter of 2018. Teva raised its non-GAAP EPS guidance for 2018 from $2.55-$2.80 to $2.80-$2.95 and its annual free cash flow guidance from $3.2-$3.4 billion to $3.6-$3.8 billion.
