What happened
Shares of Teva Pharmaceutical Industries (TEVA 1.01%) were sliding 5.4% lower as of 11:47 a.m. ET on Wednesday. The decline came after the drugmaker announced its 2022 full-year and fourth-quarter results.
Teva reported fourth-quarter revenue of $3.88 billion, down 5% year over year. The consensus estimate was for Q4 revenue of $3.93 billion.
The company posted a net loss in the fourth quarter of $1.22 billion, or $1.10 per share, based on generally accepted accounting principles (GAAP). Teva recorded non-GAAP earnings of $791 million, or $0.71 per share. This non-GAAP figure met analysts' expectations.
In addition, Teva said that it expects to generate revenue of between $14.8 billion and $15.4 billion in full-year 2023. The drugmaker forecasts non-GAAP diluted earnings per share for the year will be between $2.25 and $2.55.
So what
Investors were probably more disappointed in Teva's relatively weak 2023 outlook than they were about the Q4 revenue miss. The midpoints of the company's revenue and non-GAAP earnings guidance ranges are well below consensus Wall Street estimates.
Was today's sell-off overdone? Maybe. The company could have simply guided conservatively.
Now what
There are at least a couple of key things for investors to watch with Teva going forward. Look especially for tardive dyskinesia drug Austedo's continued adoption. The drug has been one of the brightest spots for Teva recently. Also, keep an eye on the strength of the U.S. dollar. If the dollar weakens versus other currencies as inflation moderates, it should boost Teva's sales growth.
