Teva CEO Kare Schultz
Teva (TEVA) reports quarterly earnings on May 3. Analysts expect revenue of $4.8 billion and EPS of $0.66. The revenue estimate implies a decline of more than 14% Y/Y. Investors should focus on the following key items:
The Diminution In Revenue
A 15% Y/Y decline in revenue sounds alarming on the face of it. The expected decline is consistent with the 16% fall off Teva reported in Q4 2017. The company has been hiving off assets to pare its $32 billion debt load. In selling assets the company has to forgo future revenue and earnings. Asset sales particularly hurt the Specialty segment last quarter which reported a revenue decline of 18%.
