In Teva Pharmaceutical’s (TEVA) first-quarter earnings investor presentation, the company reaffirmed its fiscal 2019 revenue guidance of $17.0 billion–$17.4 billion—a decline of 8.99% YoY (year-over-year) at the midpoint. According to the first-quarter earnings conference call, since the company earns almost 49% of its revenues in non-US dollar currencies, Teva Pharmaceutical has assumed a negative impact from the stronger US dollar in its revenue guidance.
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Revenue growth estimates
Analysts expect Teva Pharmaceutical’s revenues to change YoY (year-over-year) by -8.77% to $17.20 billion in fiscal 2019, 0.29% to $17.25 billion in fiscal 2020, and 1.39% to $17.49 billion in fiscal 2021.
Analysts also expect Teva Pharmaceutical’s revenues to change YoY by -9.50% to $4.25 billion in the second quarter, -6.42% to $4.24 billion in the third quarter, and -4.06% to $4.37 billion in the fourth quarter of fiscal 2019.
Free cash flow trends
In the first quarter, Teva Pharmaceutical reported a FCF (free cash flow) of $360 million—a sequential decline of ~$162 million. According to the first-quarter earnings conference call, the fall was attributable to annual incentive payments close to $300 million. The company had to make the payments in the first quarter. Teva Pharmaceuticals expects the FCF generation to be stronger in the second half of fiscal 2019.
In the first-quarter earnings investor presentation, Teva Pharmaceutical reaffirmed its FCF guidance of $1.6 billion–$2.0 billion for fiscal 2019.
Analysts expect Teva Pharmaceutical’s FCF to change YoY by 31.84% to $2.37 billion in fiscal 2019, 31.95% to $3.12 billion in fiscal 2020, and 11.74% to $3.49 billion in fiscal 2021.
Analysts expect Teva Pharmaceutical’s FCF to be $493.55 million, $505.50 million, and $563.10 million in the second, third, and fourth quarter of fiscal 2019, respectively.