TEVA

Ouch! Teva Needs An IV, Stat

Shares of Teva Pharmaceutical Industries (TEVA) are finding new lows this morning, with a tumble of 20%, on disappointing earnings and a weak outlook.

Owning this stock has been a painful road this year: shares are down 70%. At its 52-week high, the stock was at $42.90. With this morning's dive, it's trading at $11.27.

The Israel-based maker of generic and specialty drugs reported third-quarter earnings per share of $1.00, but analysts were looking for $1.04. To blame: higher selling costs despite lower taxes. Worse, the company slashed fourth-quarter guidance for sales and per-share profits due to competition and price erosion in the U.S. generics business.

Credit Suisse analysts Vamil Divan, Michael V. Morabito, Barbara Kotei and Duaa Mohamed, who have a $14 price target, note Teva reduced expectations for sales from new generic launches in the U.S. to roughly $400 million for the year. From CS:

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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