Teva Pharmaceutical TEVA) Stock Up Today on Higher 2015 Profit Estimate

NEW YORK (TheStreet) -- Shares of Teva Pharmaceutical Industries (TEVA) are up 0.92% to $56.91 after it was reported that the company's 2015 profit may surpass analyst estimates if generic copies of bestselling multiple sclerosis drug Copaxone are kept off the market until September, according to Bloomberg.

Earnings excluding some costs will be $5 to $5.30 per American depositary receipt in a scenario with two generic versions of once-a-day Copaxone in September, Teva said. Analysts predict $5.05 on average, Bloomberg noted.

Earnings development will hinge on how the U.S. Supreme Court rules on a patent that could protect Copaxone from rivals, Bloomberg said, adding, with Teva's number one product facing competition from newer oral drugs and potential generics, it's seeking to cut as much as $2 billion in annual costs.

Additionally, the company said it expects to spend approximately $1 billion to $1.2 billion on share buybacks during 2015.

Separately, TheStreet Ratings team rates TEVA PHARMACEUTICALS as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:

"We rate TEVA PHARMACEUTICALS (TEVA) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its solid stock price performance, compelling growth in net income, attractive valuation levels, good cash flow from operations and expanding profit margins. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 43.64% over the past year, a rise that has exceeded that of the S&P 500 Index. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Pharmaceuticals industry average. The net income increased by 23.2% when compared to the same quarter one year prior, going from $711.00 million to $876.00 million.
  • Net operating cash flow has significantly increased by 220.72% to $1,424.00 million when compared to the same quarter last year. In addition, TEVA PHARMACEUTICALS has also vastly surpassed the industry average cash flow growth rate of -19.49%.
  • The gross profit margin for TEVA PHARMACEUTICALS is rather high; currently it is at 62.87%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 17.31% trails the industry average.
  • You can view the full analysis from the report here: TEVA Ratings Report

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