Teva Pharmaceutical Industries Limited (NYSE:TEVA) Second-Quarter Results: Here's What Analysts Are Forecasting For This Year

It's been a good week for Teva Pharmaceutical Industries Limited (NYSE:TEVA) shareholders, because the company has just released its latest second-quarter results, and the shares gained 4.4% to US$17.54. Revenues of US$4.2b beat expectations by a respectable 2.9%, although statutory losses per share increased. Teva Pharmaceutical Industries lost US$0.75, which was 87% more than what the analysts had included in their models. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for Teva Pharmaceutical Industries

Taking into account the latest results, Teva Pharmaceutical Industries' nine analysts currently expect revenues in 2024 to be US$16.2b, approximately in line with the last 12 months. Earnings are expected to improve, with Teva Pharmaceutical Industries forecast to report a statutory profit of US$1.85 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$16.0b and earnings per share (EPS) of US$0.96 in 2024. Although the revenue estimates have not really changed, we can see there's been a sizeable expansion in earnings per share expectations, suggesting that the analysts have become more bullish after the latest result.

The consensus price target was unchanged at US$20.10, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Teva Pharmaceutical Industries at US$24.00 per share, while the most bearish prices it at US$14.86. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. One thing that stands out from these estimates is that revenues are expected to keep falling until the end of 2024, roughly in line with the historical decline of 2.0% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 9.6% per year. So while a broad number of companies are forecast to grow, unfortunately Teva Pharmaceutical Industries is expected to see its revenue affected worse than other companies in the industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Teva Pharmaceutical Industries' earnings potential next year. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that in mind, we wouldn't be too quick to come to a conclusion on Teva Pharmaceutical Industries. Long-term earnings power is much more important than next year's profits. We have forecasts for Teva Pharmaceutical Industries going out to 2026, and you can see them free on our platform here.

You can also see whether Teva Pharmaceutical Industries is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com