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BHC or Teva: Who Is Expected to Report Faster Revenue Growth?

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Revenue projections for fiscal 2019

In its fourth-quarter earnings conference call, Bausch Health Companies (BHC) guided for fiscal 2019 revenues in the range of $8.30 billion to $8.50 billion, which implies YoY organic growth of 0% to 3%.

According to the company’s fourth-quarter earnings investor presentation, the company reported revenues of $8.38 billion in fiscal 2018, which included around a $90 million positive impact due to foreign exchange fluctuations. The company reported organic revenues of $8.29 billion in fiscal 2018. 

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According to the company’s fourth-quarter earnings investor presentation, Teva Pharmaceutical (TEVA) expects its fiscal 2019 revenues to fall in the range of $17.0 billion to $17.4 billion.

According to Teva Pharmaceutical’s fourth-quarter earnings conference call, the company expects its Copaxone revenues to fall YoY by $900 million mainly due to increasing generic competition in the US. Additionally, the company is also anticipating further pricing pressure for Copaxone due to the entry of competitors in European markets. The company has also assumed a YoY decline in ProAir revenues in fiscal 2019 due to the entry of generic competition. Ajovy and Austedo are expected to be growth assets for the company in fiscal 2019.

According to Teva Pharmaceutical’s fourth-quarter earnings conference call, the company anticipates a negative impact of $300 million in its international market sales in fiscal 2019.

Wall Street’s projections

Wall Street analysts have projected Bausch Health Companies’ revenues to be $8.49 billion, $8.77 billion, and $8.99 billion, for fiscal 2019, fiscal 2020, and fiscal 2021, respectively, which implies a YoY revenue change of 1.30%, 3.34%, and 2.53% for fiscal 2018, fiscal 2019, and fiscal 2020, respectively.

On the other hand, Wall Street analysts have projected Teva Pharmaceutical’s revenues to be $17.32 billion, $17.43 billion, and $17.72 billion, for fiscal 2019, fiscal 2020, and fiscal 2021, respectively, which implies a YoY revenue change of -8.12%, 0.64%, and 0.24% for fiscal 2019, fiscal 2020, and fiscal 2021, respectively.

While Teva Pharmaceutical is expected to report higher absolute revenues, Bausch Health Companies is expected to report a higher revenue growth rate from fiscal 2019 to fiscal 2021.

Next, we’ll discuss EPS projections for Teva Pharmaceutical and Bausch Health Companies in fiscal 2019.

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