Teva Stock Falls After COVID-19 Impacts Q2 Top And Bottomline; Lowers FY21 Outlook

Teva Pharmaceutical Industries Ltd TEVA Q2 sales reached $3.9 billion, increasing 1% Y/Y or decreasing 2% in local currency terms, missing the consensus of $4.04 billion.
The decrease was mainly due to lower revenues in the North America segment, related primarily to Copaxone and Anda.
Revenues were also affected by changes in demand for certain products resulting from the impact of the COVID-19 pandemic.
Adjusted EPS of $0.59 came in line with expectations.
The adjusted gross margin improved to 53.3% from 52% a year ago. Adjusted operating income reached little above $1 billion, +6% Y/Y mainly due to higher profit in our Europe segment.
Adjusted EBITDA increased 5% to $1.2 billion.
Teva generated an operating cash flow of $218 million, with a free cash flow of $625 million.
Outlook: Teva lowered the FY21 revenue outlook to reflect the ongoing impact of COVID-19. It expects revenues of $16 billion - $16.4 billion vs. $16.4 - $16.8 billion prior, lower than the consensus of $16.5 billion.
It sees adjusted EPS of $2.50 - $2.70 vs. the consensus of $2.45.
It expects a $2.0 - $2.3 billion free cash flow and an adjusted EBITDA of $4.8 - $5.1 billion.
Price Action: TEVA shares are down 1.35% at $8.80 during the premarket session on the last check Wednesday.

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