Why Teva Pharmaceutical Industries Stock Is Soaring

Teva Pharmaceutical Industries TEVA shares are trading higher Wednesday after the company reported better-than-expected financial results.

Teva said second-quarter revenue decreased 3% year-over-year to $3.8 billion, which beat the estimate of $3.78 billion, according to data from Benzinga Pro. The company reported quarterly earnings of 68 cents per share, which beat the estimate of 57 cents per share.

Teva lowered its 2022 revenue expectations from a range of $15.4 billion to $16 billion to a range of $15 billion to $15.6 billion, citing foreign exchange headwinds.

Teva reaffirmed its earnings and cash flow guidance. Full-year earnings are expected to be between $2.40 and $2.60 per share. Full-year free cash flow is expected to be between $1.9 billion and $2.2 billion.

Teva also provided an update on its opioids settlement. The company said it reached an agreement to pay up to $4.25 billion, spread over 13 years. Approximately $3 billion will be paid to state and local governments. Teva also plans to supply up to $1.2 billion of its generic version of Narcan, which can reverse an overdose from opioids. The company also expects to pay approximately $100 million to Native American tribes.

Teva is a leader in generic and specialty medicines with a portfolio consisting of over 3,500 products in nearly every therapeutic area.

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TEVA Price Action: Teva has a 52-week high of $10.50 and a 52-week low of $6.77.

The stock was up 21.1% at $8.62 at time of publication.

Photo: Pexels from Pixabay.