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Teva or Mylan: Whose Earnings Are Growing Faster?

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Earnings guidance

In its third-quarter earnings investor presentation, Teva Pharmaceutical (TEVA) forecast 2018 non-GAAP (generally accepted accounting principles) EPS of $2.80–$2.95, a significant increase at the midpoint from the guidance of $2.55–$2.80 it had provided in August 2018 and the guidance of $2.25–$2.50 it had provided in February 2018.

In its third-quarter earnings investor presentation, Teva Pharmaceutical forecast 2018 non-GAAP EBITDA of $5.2 billion–$5.4 billion, a significant increase at the midpoint from the guidance of $5.0 billion–$5.3 billion it had provided in August 2018 and the guidance of $4.7 billion–$5.0 billion it had provided in February 2018.

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In its third-quarter earnings investor presentation, Teva Pharmaceutical forecast 2018 non-GAAP operating income of $4.6 billion–$4.8 billion, a significant increase at the midpoint from the guidance of $4.3 billion–$4.6 billion it had provided in August 2018 and the guidance of $4.0 billion–$4.3 billion it had provided in February 2018.

In its third-quarter earnings investor presentation, Mylan (MYL) forecast adjusted 2018 EPS of $4.55–$4.90.

Wall Street estimates

Wall Street analysts expect Teva Pharmaceutical’s non-GAAP EPS to be $2.93, $2.83, and $2.95, respectively, in 2018, 2019, and 2020, implying YoY changes of -26.88%, -3.51%, and 4.43%, respectively.

On the other hand, Wall Street analysts expect Mylan’s non-GAAP EPS to be $4.68, $5.11, and $5.49, respectively, in 2018, 2019, and 2020, implying YoY growth rates of 2.63%, 9.16%, and 7.52%, respectively.

Compared to Teva Pharmaceutical, Mylan is expected to report higher non-GAAP EPS in absolute terms in all years from 2018 to 2020. Additionally, unlike Teva Pharmaceutical, Mylan is expected to report a gradual rise in its non-GAAP EPS from 2018 to 2020.

In the next article, we’ll compare the margins of Teva Pharmaceutical and Mylan in greater detail.

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