Teva CEO Kare Schultz
Teva (TEVA) reported Q3 revenue of $5.61 billion and eps of $1.00. The company missed on revenue by $10 million and missed on eps by $0.04. The stock sold off nearly 20%. Below are the reasons I think the stock sold off.
Weak Guidance
Managing Wall Street's expectations is highly-important for a publicly-traded company. Analysts hate negative surprises. Teva surprised many analysts with negative guidance for Q4 and full-year 2017. The company guided that Q4 revenue could be $5.3 - $5.4 billion. The mid-point of that guidance ($5.35 billion) implies Q4 revenue could be off nearly 5% sequentially. Q3 actual revenue was up 1% Y/Y and down 1% Q/Q. Management gave full year revenue guidance of $22.2 - $22.3 billion. The mid-point of the range is down over 3% versus the previous guidance.
