What happened
Thursday was an eventful day for drug maker Teva Pharmaceutical Industries (TEVA 0.11%). Not only did the company release its latest set of quarterly earnings, it also reached a settlement in a major lawsuit. In what could have been a much worse trading session for the stock, it ultimately closed the day with a less than 2% decline.
So what
Arguably, the more important development is the legal settlement, in which Teva has agreed to pay a total of $523 million to the state of New York. This arrangement is part of a sprawling lawsuit involving a clutch of pharmaceutical companies accused of exacerbating the opioid crisis with their business practices.
Last December, a jury in the case found Teva and several of its subsidiaries liable in the matter. The settlement resolves the case. "This is a landmark day in our battle against the opioid crisis," the state's attorney general was quoted as saying in a statement disseminated to the media.
Meanwhile, as if that weren't enough of a development, Teva also unveiled its third-quarter results. The company earned revenue of just under $3.6 billion, which was down from the nearly $3.9 billion in the same period one year ago. In contrast, non-GAAP net income crept up over that stretch, to $658 million ($0.59 per share) from Q3 2021's $651 million.
This meant a double miss for Teva, as analysts were collectively modeling almost $3.9 billion on the top line, and $0.62 per share for adjusted net income.
Now what
Teva also lowered its revenue guidance for the entirety of 2022. The company now believes it will post $14.8 billion to $15.4 billion on the top line, down from the previous estimation of $15 billion to $15.6 billion. The earnings forecast of $2.40 to $2.60 per share for the year remains unchanged.
