Shares of Teva Pharmaceuticals (TEVA) - Get Report surged Thursday after the generic drug giant beat analysts' estimates on earnings and revenue and reaffirmed its financial guidance for 2020 as the coronavirus drove up demand for its medicines.
Teva's stock price shot up 11.31% to $11.66 a share in premarket trading after the generic drugmaker reported earnings of $835 million, or 76 cents a share, for the first quarter of 2020, up from $654 million, or 60 cents a share, during the same period in 2019.
That beat the estimate of analysts surveyed by Zacks Investment Research, who had predicted a 1.67% decline in quarterly profit to 59 cents a share.
Teva also beat the mark on revenue, reporting $4.4 billion in sales for the quarter, a 5% jump over the first quarter of 2019 while also ringing in higher than the $4.14 billion estimate of analysts polled by Zacks.
Teva, the world's largest generic drugmaker, also reaffirmed its financial guidance for full-year 2020, estimating $16.6 billion to $17 billion in revenue, EBITDA between $4.5 billion and $4.9 billion, and earnings per share of $2.30 to $2.55 a share.
That compares to the full-year estimate of Zacks' analysts of earnings per share of $2.40 and revenue of $16.49 billion.
Teva saw generic drug sales jump 13% in North America to $426 million in the first quarter, with the company attributing the increase to the Covid-19 pandemic. Generic drug sales were $379 million during the first three months of 2019.
Teva's lineup of medicines includes respiratory drugs, such as inhalers to treat asthma, that have seen a surge in use by hospitals as they scramble to help Covid-19 patients.