Teva Pharmaceuticals shares up after it raises second-quarter estimates
Shares of Teva Pharmaceuticals rose nearly 4 percent Wednesday in early trading after it increased its fiscal second-quarter earnings and revenue forecasts.
The generic drugmaker now expects to earn an adjusted $1.19 to $1.22 a share for the quarter, compared to its prior forecast of $1.16 to $1.20 a share. The current consensus estimate is $1.17 a share.It expects second-quarter revenue of $4.9 billion to $5 billion versus a previous forecast of $4.8 billion to $4.9 billion."We expect the closing of the Allergan generic deal any time now," said Erez Vigodman, Teva's president and CEO, during a conference call Wednesday.Sources told CNBC, the deal could close within the next two weeks.Once the deal closes, Teva estimates earnings before interest, taxes, depreciation and amortization will rise to a range $10.7 billion to $11.5 billion dollars by 2019 from its current EBITDA of $6.6 billion dollars in fiscal 2015, he said.In addition, Teva expects the benefits of the merger, including tax savings from the deal, to result in savings of $1.4 billion dollars annually by the end of 2019, Vigodman said.Teva's stock has plummeted this year, falling more than 17 percent.13 Jul 2016
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