Teva stock bumped into its 200-day line Wednesday after the drugmaker beat first-quarter profit expectations and raised its earnings outlook for the year.
For the year, Teva Pharmaceutical now expects to earn $2.45 to $2.65 a share, on an adjusted basis. That's up 10 cents per share from Teva's guidance three months ago.
But the drugmaker missed sales expectations and lowered its revenue outlook for the year. Chief Executive Richard Francis noted Teva exited its business in Japan during the first quarter. He noted Teva divested that business to divert its capital to more profitable businesses. Minus that, underlying sales are expected to grow this year.
"I think right now the analysts see the guidance as really favorable because the one thing they were looking at was, can Teva drive profitability in '25, '26 and '27," he told Investor's Business Daily. "I think we gave real clarity on our ability to drive our EBITDA (earnings before interest, taxes, depreciation and amortization)."
Teva stock jumped 9.2%, closing at 17.60. Shares briefly hit a five-month high, ending the regular session in line with their 200-day moving average, MarketSurge shows.
Sales Miss And Guidance Is Cut
Across all products, Teva generated $3.89 billion in sales, missing expectations for $4.06 billion, according to FactSet. Sales increased 2% on a strict, as-reported basis, and 5% in constant currency.
Teva credited higher sales of tardive dyskinesia drug Austedo and schizophrenia drug Uzedy in the U.S. Tardive dyskinesia is a movement disorder. Generic drugs and Ajovy performed well everywhere, Teva said in its news release. Ajovy is a migraine prevention treatment.
But Teva cut its sales outlook for the year by $200 million at the high end, accounting for the Japan divestiture. The company now projects $16.8 billion to $17.2 billion in total sales.
Teva hiked its Austedo sales projection to $1.95 billion to $2.05 billion. Ajovy, Uzedy and Copaxone are still expected to generate $600 million, $160 million and $370 million, respectively. Copaxone treats multiple sclerosis.
Notably, Teva said the current U.S. tariffs will have an "immaterial impact" on 2025 metrics.
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