A solid earnings report can be a real winner for any stock. For healthcare stock Teva Pharmaceutical (NYSE:TEVA), it’s no different. Teva shot up over 12% going into the end of Wednesday’s trading session. Though the news wasn’t all positive for Teva, it certainly delivered its share of wins.
The earnings report delivered much of the heavy lifting in hiking Teva’s share price. Teva’s earnings per share came in at $0.56, ahead of analysts’ estimates calling for $0.53. Further, it posted $3.9 billion in revenue, which beat analyst estimates calling for $3.72 billion. That performance was enough to hike up the overall revenue guidance, raising it to between $15 billion and $15.4 billion, up from the earlier estimates of between $14.8 billion and $15.4 billion. Now, a beat is almost certain, as analysts were looking for $15.02 billion.
Much of the success in Teva’s results could be traced to two key launches: one, its tardive dyskinesia / Huntington’s disease drug Austedo, and two, its newly-launched Uzedy schizophrenia drug. The news wasn’t all good, as Teva also noted a hefty new expense. Teva established a $200 million provision in its second quarter 2023 results, which would go toward settling a probe from the U.S. Department of Justice over issues of price fixing.
Despite the brighter future seemingly ahead, analysts are largely split on Teva’s overall trajectory. A combination of three Buy ratings, four Hold and two Sell makes Teva a Hold by analyst consensus. However, Teva stock also comes with a 6.9% upside potential thanks to its average price target of $9.92.
