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.
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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.
