Teva Pharmaceuticals shares up after it raises second-quarter estimates

Shares of Teva Pharmaceuticals rose nearly 4 percent Wednesday in early trading after it increased its fiscal second-quarter earnings and revenue forecasts.

The generic drugmaker now expects to earn an adjusted $1.19 to $1.22 a share for the quarter, compared to its prior forecast of $1.16 to $1.20 a share. The current consensus estimate is $1.17 a share.

It expects second-quarter revenue of $4.9 billion to $5 billion versus a previous forecast of $4.8 billion to $4.9 billion.

"We expect the closing of the Allergan generic deal any time now," said Erez Vigodman, Teva's president and CEO, during a conference call Wednesday.

Sources told CNBC, the deal could close within the next two weeks.

Once the deal closes, Teva estimates earnings before interest, taxes, depreciation and amortization will rise to a range $10.7 billion to $11.5 billion dollars by 2019 from its current EBITDA of $6.6 billion dollars in fiscal 2015, he said.

In addition, Teva expects the benefits of the merger, including tax savings from the deal, to result in savings of $1.4 billion dollars annually by the end of 2019, Vigodman said.

Teva's stock has plummeted this year, falling more than 17 percent.

13 Jul 2016

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