Why Are Teva Pharmaceutical Shares Trading Higher Today?

Teva Pharmaceutical Industries Ltd's TEVA Q4 sales reached $4.1 billion, shrinking 8% Y/Y, missing the consensus of $4.29 billion. 

• The decrease is mainly due to lower revenues from generic products in North America and COPAXONE, partially offset by higher revenues from AUSTEDO and AJOVY. 
• Revenues continued to be affected by the ongoing impact of the COVID-19 pandemic on markets and customer stocking and purchasing patterns.
• The adjusted gross margin was 56.1% compared to 52.3% a year ago. Adjusted operating income increased 9% to $1.25 billion. 
• Adjusted EBITDA increased 8% to $1.37 billion.
• The company generated cash flow from operating activities of $456 million, with a free cash flow of $716 million.
• Adjusted EPS of $0.77 surpassed the Wall Street estimate of $0.73.
• Outlook: Teva anticipates FY22 sales of $15.6 - $16.2 billion, below the consensus of $16.32 billion
• It expects adjusted EPS of $2.40 - $2.60, below the analysts' estimate of $2.64.
• Free cash flow is expected to be $1.9 billion - $2.2 billion.
• Teva Pharmaceuticals CEO Schultz said he is optimistic the company can still reach nationwide settlements on Opioid cases in the next 12 months.
• Price Action: TEVA shares are up 12.20% at $9.31 during the market session on the last check Wednesday.