TEVA Beats on Q1 Earnings, Expects $700M Cost Savings by 2027, Stock Up

Core Viewpoint - Teva Pharmaceutical Industries reported mixed first-quarter 2025 results, beating earnings estimates but missing revenue expectations, with adjusted earnings of 52 cents per share and revenues of $3.89 billion [1][16]. Financial Performance - Adjusted earnings increased by 8% year over year, driven by higher operating profits [1]. - Total revenues rose 2% year over year on a reported basis and 5% on a constant currency basis [1]. - U.S. segment sales reached $1.91 billion, an 11% increase year over year, surpassing estimates [2]. Product Performance - Revenues from generic products in the U.S. rose 5% to $849 million, primarily due to the launch of Simlandi, a generic version of Humira [3][4]. - Sales of Austedo, a Huntington's disease drug, increased by 40% year over year to $396 million, exceeding estimates [6]. - Ajovy sales grew 18% year over year to $53 million, while Uzedy generated $39 million in sales [7]. Regional Performance - Europe segment revenues declined 6% year over year to $1.19 billion, missing estimates [9][10]. - International Markets segment sales decreased 2% year over year to $582 million, also missing estimates [11]. Guidance and Future Outlook - Teva expects total revenues for 2025 to be between $16.8 billion and $17.2 billion, slightly lowering the upper end of the previous guidance [13]. - Adjusted EPS guidance for 2025 was raised to a range of $2.45-$2.65 per share [13]. - The company anticipates $700 million in cost savings by 2027, with an adjusted operating margin target of 30% [15]. Market Reaction - Following the earnings release, Teva's stock rose over 9%, despite a year-to-date decline of 20.1% compared to the industry decline of 17.6% [19].