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Teva Reports Earnings Tomorrow. Here's What to Expect.

Teva Pharmaceuticals, the maker of generic drugs, has had a difficult year as it battles litigation over the opioid crisis.

The maker of generic drugs has had a difficult year. The stock is far behind both the S&P 500 and health care shares in general.

Teva Pharmaceutical Industries has had a difficult year, with shares down 44.6% in 2019, vastly underperforming the S&P 500, up 22.7% this year, and the S&P 500 Health Care sector, with an 8.3% gain.

On Thursday, executives at the Israeli generic drugmaker (ticker: TEVA) will try again to change the narrative on the stock as they release the company’s third-quarter earnings. Teva is hosting a conference call for investors at 8 a.m. Eastern that day.

It comes weeks after the company said it had reached a tentative deal to settle the cases brought against it in the sprawling effort to hold corporations responsible for the opioid crisis. Yet the agreement has yet to be accepted by the vast majority of plaintiffs.

The company’s sponsored ADR is trading at 3.6 times expected earnings over the next 12 months. That is well below the five-year average of 7.8 times expected earnings.

Here’s a snapshot of investors’ expectations and recent history.

Write to Josh Nathan-Kazis at josh.nathan-kazis@barrons.com

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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