Teva Pharmaceutical reported better-than-expected second-quarter earnings and narrowed its full-year profit outlook as generic drug sales remain "stable" before the stock market open Wednesday.
The Israel-based maker of generics and other drugs saw Q2 EPS grow about 9% to 66 cents with sales totaling $4.18 billion, up less than 1% vs. a year ago. Prior to the release, analyst consensus pegged second-quarter earnings coming in at 62 cents per share on $4.27 billion in revenue, according to FactSet.
Teva Pharmaceutical on Wednesday also reaffirmed its 2025 revenue outlook of $16.8 billion - $17.2 billion and now expects full-year earnings of $2.50 per share to $2.65 per share.
In May, the drugmaker beat first-quarter profit expectations and raised its earnings outlook for the year. At the time, Teva expected to earn $2.45 to $2.65 a share, on an adjusted basis in 2025, up 10 cents per share from Teva's earlier guidance.
Drug Sales Rise; Generics Steady
Across all products in Q2, sales increased 1% on a local currency basis.
Teva credited higher sales of tardive dyskinesia drug Austedo and schizophrenia drug Uzedy. Tardive dyskinesia is a movement disorder.
Generic drugs had a "stable" performance in the second quarter, with global revenue down about 2% in local currency. Meanwhile, Teva Pharmaceutical's Ajovy performed well, with sales increasing more than 31%. Ajovy is a migraine prevention treatment.
Teva narrowed its 2025 Austedo sales projection to $2 billion - $2.05 billion, up from the previous $1.95 billion to $2.05 billion view. The drugmaker forecasts Ajovy and Uzedy revenues to total $630 - $640 million and $190 million - $200 million, respectively. Teva previously predicted Ajovy sales of $600 million with Uzedy revenue coming in at $160 million.
"Teva's performance this quarter stands as a testament to the exceptional strength of our innovative portfolio, which remains the primary engine driving our revenue growth," Teva CEO Richard Francis said in the earnings release.
Analysts forecast Teva Pharmaceutical profit for the year growing 1.6% to $2.53 per share with revenue increasing 2% to $16.89 billion, according to FactSet.
Notably, Teva said at the beginning of the second quarter that current U.S. tariffs will have an "immaterial impact" on 2025 metrics. The company has eight production facilities in the U.S., and says its supply chain is centered in the U.S., Israel and Europe.
Teva Stock Performance
During Wednesday's stock market action, Teva stock advanced 1.8% to 16.84. Teva stock traded sideways since May, below resistance at its 50-day and 200-day moving averages, according to MarketSurge charts.
Overall, the 19 stocks in the IBD-tracked Medical-Generic Drugs industry group have collectively fallen less than 1% in the 2025 stock market. That places it 116 out of the 197 industries ranked by IBD.
Investors can keep tabs on the IBD Leaderboard watchlist, the IBD 50 list of top growth stocks and IBD SwingTrader along with the IBD Sector Leaders list.
Teva stock has a 36 Composite Rating out of a best-possible 99. The drug stock also has a 25 Relative Strength Rating and a 54 EPS Rating.
Please follow Kit Norton on X @KitNorton for more coverage.
YOU MAY ALSO LIKE:
Get Full Access To IBD Stock Lists And Ratings
Why This IBD Tool Simplifies The Search For Top Stocks
IBD Digital: Unlock IBD's Premium Lists, Tools And Analysis Today
How To Invest: Rules For When To Buy And Sell In Bull And Bear Markets
