Israeli pharmaceutical major Teva (NYSE:TEVA) has delivered a better-than-expected performance for the fourth quarter. The company also announced plans to divest its API unit.
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In Q4, Teva’s revenue increased by 14.9% year-over-year to $4.46 billion. The figure exceeded estimates by $430 million. Moreover, EPS of $1.00 outpaced expectations by a wide margin of $0.23. The company’s top-line jump was primarily driven by higher Austedo sales and a $500 million upfront payment associated with Teva’s anti-TL1A asset.
For Fiscal Year 2024, the company foresees revenue in the range of $15.7 billion to $16.3 billion. EPS for the year is seen landing between $2.20 and $2.50. Further, Austedo, Ajovy, and Copaxone sales are anticipated at $1.5 billion, $500 million, and $400 million, respectively.
Separately, Teva announced plans to divest its API business. This M&A move is expected to help Teva focus on its core business and channel capital towards growth and innovation. The divestiture is expected to be completed in the first half of next year.
Is TEVA Stock a Buy, Sell, or a Hold?
Overall, the Street has a Moderate Buy consensus rating on Teva Pharmaceutical, and the average TEVA price target of $13.57 implies a 15.7% potential upside in the stock. That’s on top of a nearly 40% jump in the company’s share price over the past six months.
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