US Stock Market Opens Lower on Thursday

Teva's stock drops more than 4%

Author's Avatar
Aug 02, 2018
Article's Main Image

U.S. stock markets were trading lower Thursday morning despite the season of corporate earnings results.Â

Shares of Teva Pharmaceutical Industries Ltd. (TEVA, Financialfell onThursday morning more than 4% after the company posted second-quarter earnings. The company recorded earnings per share of 78 cents on revenue of $4.billion. The company beats earnings estimates by 1cents, but fell short revenue estimates by $40 million.

GAAP gross profit was $2.1 billion, a decrease of 28% compared to the second quarter of 2017. GAAP gross profit margin was 43.8%, compared to 49.9% in the same trimester of 2017.

Gross profit from the North America segment was $1.2 billion, a decrease of 42% compared to $2.1 billion in the second quarter of 2017. The decrease is explained by lower revenues from its drug Copaxone and generic products. Gross profit margin for this segment was 53.2%, compared to 64.9%.

Gross profit from the Europe segment was $731 million, an increase of 6% compared to $692 million. The increase is explained by the positive impact of currency fluctuations. Gross profit margin was 55.0%, compared to 53.4%.

Gross profit from the international markets segment was $328 million, a decrease of 18% compared to $400 million. The decrease was due to lower gross profit in Japan and Russia. Gross profit margin decreased to 41.6%, compared to 45.2%.

Further, the earnings before interest, taxes, depreciationand amortization was $1.4 billion in the second quarter, down 20% compared to $1.7 billion in the second quarter of 2017.

Moreover, the cash flow generated from operations was $162 million, compared to $435 million in the second quarter of 2017. This minor cash generation was principally a consequence of higher payments related to the restructuring plan during the trimester.

For the full year, the company raised its outlook for adjusted earnings per share to $2.55 and $2.80 from $2.40 to $2.65. However, it was maintained the outlook for revenue between $18.5Â billion and $19 billion.

Gainers

• CF Industries Holdings Inc. (CF, Financial)

• Clorox Co. (CLX, Financial)

• SCANA Corp. (SCG, Financial)

• Exelon Corp. (EXC, Financial)

Losers

• TripAdvisor Inc. (TRIP, Financial)

• Unum Group (UNM, Financial)

• Wynn Resorts Ltd. (WYNN, Financial)

• Public Storage (PSA, Financial)

Global markets

The main European stock markets traded in the red. The U.K.'s FTSE 100 retreated 1.24%, France's CAC 40 slid 0.23%, Germany's Dax fell 0.53% and Spain's Ibex 35 swelled 0.70%.

In Asia, markets closed low. Japan's Nikkei 225 slid 1.03%India’s BSE Sensex lost 0.95%, Hong Kong's Hang Seng fell 2.21% and China's Shanghai Composite retreated 2.00%.

Disclosure: The author holds no positions in any stocks mentioned.