Investing.com - Teva Pharma Industries Ltd ADR (NYSE:TEVA) stock is seeing a big sell-off on Thursday as traders reacted to the company’s disappointing second-quarter results and lowered full-year outlook.
Teva posted EPS of $1.02 in the second quarter on revenue of $5.686 billion, missing analysts' forecast for $1.06 and $5.72 billion.
Interim CEO Yitzhak Peterburg blamed the poor performance on a saturation of the U.S. generic drug market and challenges in Venezuela. Commenting on the results, Peterburg said, "All of us at Teva understand the frustration and disappointment of our shareholders in light of these results." He added, "Given the current environment, we have had to take swift and decisive actions. We are focused on executing meaningful cost reductions, rationalizing our assets and maximizing their value, actively pursuing divestiture opportunities and strengthening our balance sheet. We will continue to take action to aggressively confront our challenges.”
Israel based Teva calls itself the largest producer of generic medicines. Peterburg has been CEO since February when Erez Vigodman resigned suddenly amid reports of a bribery investigation by the Israel Police.
Teva also lowered its full-year 2017 outlook. The company now expects revenue between $22.8 billion and $23.2 billion versus the previous guidance for $23.8 billion to $24.5 billion. Full-year EPS was downgraded to between $4.30 and $4.50 from the prior $4.90 to $5.30.