U.S. stock markets were trading lower Thursday morning despite the season of corporate earnings results.Â
Shares of Teva Pharmaceutical Industries Ltd. (TEVA, Financial) fell onThursday morning more than 4% after the company posted second-quarter earnings. The company recorded earnings per share of 78 cents on revenue of $4.7 billion. The company beats earnings estimates by 14 cents, 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)
• SCANA Corp. (SCG, Financial)
• Exelon Corp. (EXC, Financial)
Losers
• TripAdvisor Inc. (TRIP, 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.