Teva Pharmaceutical Industries Ltd. (TEVA) on Thursday announced a cut in its earnings and revenue forecast for the full year, and the revised figures came in below analysts' expectations.
The company now expects non-GAAP earnings per share between $5.30 and $5.40 for the full year ending December 31. The prior outlook was for non-GAAP earnings in a range of $5.48 to $5.68 per share.
On average, 28 analysts polled by Thomson Reuters expect earnings of $5.59 per share for the year. The estimates range from $5.42 to $5.93 per share. Analysts' estimates typically exclude special items.
Total net sales forecast is revised to be between $20 billion to $21 billion, while the previous projection was for $22 billion. Analysts expect revenues of $21.27 billion with the estimates ranging between $20.55 billion and $22.00 billion.
The sales forecast comprises U.S. net sales of $10.5 billion, European net sales of $5.8 billion, and total Rest of the World net sales of $4.2 billion. Earlier in December 2011, Teva had projected total U.S. net sales of $11 billion, total European net sales of $6.6 billion, and total ROW net sales of $4.4 billion.
The firm sees generic product net sales of around $10.7 billion and brand product net sales of about $8.0 billion.
Multiple sclerosis drug Copaxone's sales are estimated to be $3.8 billion in the year.
OTC net sales are expected to be around $1 billion for 2012.
Meanwhile, CEO Jeremy Levin has reportedly said that profit and revenue are being hit by a weak Europe.
Early this month, Teva said profit in the first quarter grew about 13 percent from last year, amid a 25 percent increase in revenues with growth in both branded and generic products.
Shlomo Yanai, Teva's then President and CEO said at that time, "2012 is off to a good start for Teva. We enjoyed a quarter of strong growth for our branded products, in our US generics business, and in the developing markets Teva operates in. All of these served to offset weaker generics sales in Europe, which resulted primarily from the macro-economic conditions in that region."
TEVA is currently trading at $39.87, up $1.29 or 3.34 percent on a volume of 1.83 million shares.
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