The numbers: Third-quarter net income inched up 3% to $649 million, but earnings per share fell 6% to 72 cents. Revenue increased 25% to $3.6 billion. Teva's gross margin decreased from 57% to 54%, but its operating margin expanded from 23% to 24%. A quick ratio of 0.9 indicates less-than-ideal liquidity. A debt-to-equity ratio of 0.3 reflects modest leverage.
The stock: Teva has risen 28% this year, beating the Dow Jones Industrial Average and S&P 500 Index. The stock trades at a price-to-earnings ratio of 57, a premium to the market and pharmaceutical peers. The shares have a 1.2% dividend yield.