Teva Pharma 4Q Profit Disappoints, Shares Slip
Despite doubling its profit, Teva Pharmaceutical (NASDAQ:TEVA) on Tuesday revealed fourth-quarter revenue below Wall Street estimates, sending its shares nearly 6% lower.
The Israeli company earned $771 million, or 85 cents a share, compared with $379 million, or 42 cents a share, in the same quarter last year.
Excluding special items, particularly related to exchange rates, impairment charges and acquisitions, the company earned $1.25 a share for the period ended Dec. 31, narrowly below average analyst estimates polled by Thomson Reuters of $1.28.
Revenue for the developer of generic and branded drugs was $4.4 billion, up 16% from $3.8 billion a year ago, missing the Street’s view of $4.64 billion. Sales were helped by record global in-market sales of Copaxone, up 26% to $938 million.
North American sales widened by 7% in the quarter on generic sales, while European sales grew 43% to the consolidation of ratiopharm results and generic growth. Teva’s international segment climbed 10%, driven by increases in Russia and Israel.
The push in sales helped the company achieve record 2010 revenue of $16.1 billion.
Shlomo Yanai, the company’s chief executive, called 2010 a great year for Teva, “a year in which we delivered record-breaking results across all our geographies while strengthening and expanding our global leadership.”
The company, Yanai said, has built a larger, stronger and more agile organization, providing it with a strong foundation to deliver profitable growth in 2011.