Teva Stock Skids After Lower-than-Expected Q4 Results
Early Wednesday, Teva stock took a hit as the generic drugmaker reported adjusted income of $1 per share and $4.46 billion in fourth-quarter sales. Analysts had predicted earnings of 77 cents per share and $4.03 billion in sales. This marks an increase from last year’s earnings of 71 cents a share on $3.88 billion in sales. Though Teva’s earnings guidance for the year falls just short of analysts’ estimates, the company projected a higher sales figure at $15.7 billion to $16.3 billion compared to the projected $15.57 billion. As a result, Teva stock fell by 2.1% in premarket trades.
The Ups and Downs of Pharmaceutical Companies
While Teva struggled with its fourth-quarter results, other pharmaceutical companies experienced a mix of success and disappointment. GSK reported adjusted earnings of 73 cents a share and $10.2 billion in fourth-quarter sales, slightly missing the analysts’ expectations of 74 cents and $9.6 billion, respectively. Despite this, GSK stock saw a 3.4% increase to 40.40. On the other hand, Novartis fell short of the projected earnings of $1.65 per share and $11.88 billion in sales, reporting $1.53 per share on $11.42 billion in sales. As a result, Novartis stock experienced a 2.3% decrease to 105.32.
Teva’s Stock Performance and Future Prospects
Teva stock recently broke out of a cup-with-handle base, reaching a buy point of 10.72 earlier this month. Currently, shares are trading above the chase zone, which extends up to 11.26. The company’s adjusted income guidance for the year is set at $2.20 to $2.50 per share, falling just below analysts’ estimates of $2.41. However, Teva’s sales projection of $15.7 billion to $16.3 billion surpasses the expected $15.57 billion. As investors continue to monitor Teva’s performance, the company’s ability to meet its sales targets and maintain its stock price will be key factors in determining its future prospects.
Analyst comment
Positive news: GSK stock increased by 3.4% after reporting fourth-quarter sales slightly below expectations.
Negative news: Teva stock fell by 2.1% after reporting lower-than-expected Q4 results.
Neutral news: Novartis stock decreased by 2.3% after reporting lower-than-expected earnings and sales.
As an analyst, Teva’s ability to meet its sales targets and maintain its stock price will be crucial in determining its future prospects.
