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Generic and specialty drug giant Teva Pharmaceutical Industries ( TEVA ) beat analysts’ Q1 earnings estimates and guided Q2 in line with expectations Monday, sending the stock up in early trading. Teva’s Q1 earnings excluding one-time items came to $1.20 a share, down 12% from the year-earlier quarter but 3 cents above analysts’ consensus. Revenue shrank 3.5% to $4.81 billion, but that’s more than $30 million past consensus. Teva guided Q2 earnings at $1.16 to $1.20 a share, down from $1.43 a year ago and bracketing consensus. It forecast Q2 revenue to decline slightly to $4.7 billion to $4.9 billion, on the low side of analysts’ $4.89 billion. Teva stock was up 4.5% in early trading on the stock market today , near 52.50, perhaps as a relief rally after the whole industry got spooked Friday by Endo International ‘s ( ENDP ) comments about pricing pressure in generic drugs , driving it to slash its full-year guidance. Teva stock fell to a more than 18-month low of 50 on Friday. Teva declined to offer 2016 guidance until it closes its buyout of Allergan ‘s ( AGN ) generics unit Actavis, which is expected to happen next month, but its Q2 guide did not suggest a dramatic underperformance. Credit Suisse analyst Vamil Divan did note, however, that the generics business, which makes up about 45% of total revenue, missed Wall Street’s estimate, though this was balanced out by a beat on the specialty side. “U.S. Generics revenues declined 32% year over year, mainly from a decline in sales of Nexium and Pulmicort,” Divan wrote in a research note. “Specialty Medicine revenues increased by 10% year over year, driven primarily by higher sales of CNS (central nervous system) and respiratory products.” Allergan stock, which also sold off Friday, was up 4.5% in early trading Monday. Endo stock was down 2.5%. Scalper1 News
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