After reporting second-quarter results, Teva Pharmaceuticals (TEVA) devastated its shareholders by announcing a dividend cut, writing down part of its Actavis acquisition and issuing a weak outlook. Forecasting a brighter outlook in May and assuming the stock bottomed before that, in February, proved wrong. What went wrong with Teva’s quarter and what will happen next?
Calling Teva’s bottom and then raising the stock's price target proved wrong, at least for now:
3 Reasons I Am Upgrading Target Price On Teva Pharmaceuticals
Mon, May 15
Teva Pharmaceuticals Has Bottomed This Time
Wed, Feb. 15
The company sent its share price lower by nearly 50 percent in the last month. Teva continued its downward path when it fell 16 percent last week. In the second quarter, revenue totalled $5.7 billion and net income of $1.1 billion. Cash flow was too light, at $741 million that management had to cut its dividend and lower its revenue outlook for 2017. Teva now expects revenue of between $22.8 billion to $23.2 billion and non-GAAP EPS of between $4.30 to $4.50 a share.
