Teva Pharmaceutical Industries Limited
) is scheduled to report second quarter 2014 results before the
opening bell on Jul 31.
Why a Likely Positive Surprise?
Our proven model shows that Teva is likely to beat earnings because
it has the right combination of two key ingredients.
Positive Zacks ESP:
Teva has an
of +2.46%. This is a meaningful and leading indicator of a likely
positive earnings surprise for the shares.
Teva carries a Zacks Rank #2 (Buy) which when combined with a
+2.46% ESP makes us confident of an earnings beat.
Note that stocks with Zacks Rank #1, 2 and 3 have a significantly
higher chance of beating earnings. The Sell-rated stocks (#4 and 5)
should never be considered going into an earnings announcement.
What is Driving the Better-than-Expected Earnings?
The company's generic medicine segment should continue to perform
well. Teva has successfully delayed the release of generic versions
of its relapsing-remitting multiple sclerosis product, Copaxone to
date. The product generated approximately $1.1 billion in worldwide
sales in the first quarter of 2014, accounting for more than 21% of
total revenues. Teva has submitted a citizen petition to the FDA
related to the approvability of purported generic versions of
Meanwhile, cost-cutting initiatives at Teva should boost its bottom
Last quarter, Teva had posted a negative earnings surprise of 0.8%.
However, the company had recorded positive earnings surprise in
three consecutive quarters before that. In the trailing four
quarters, the company recorded an average beat of 0.8%.
Other Stocks to Consider
Here are some other companies you may want to consider as our model
shows these also have the right combination of elements to post an
earnings beat this quarter:
Acorda Therapeutics, Inc. (
) has an earnings ESP of +14.29% and carries a Zacks Rank #3. It is
expected to report second-quarter results on Jul 31 before market
Endo International (
) has an earnings ESP of +1.11% and carries a Zacks Rank #2. Endo
will report second quarter earnings on Jul 31 before market opens.
Impax Laboratories (
) has an earnings ESP of +26.83% and holds a Zacks Rank #3. Impax
will report second quarter earnings on Aug 6 before market
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