(TEVA) - Teva Pharmaceutical Industries - Over the past 16 quarters, TEVA beat analysts' earnings expectations on 14 occasions

Teva Pharmaceutical Industries Limited (TEVA), a Zacks #1 Rank stock, exceeded analysts' earnings expectations in 14 out of the past 16 quarters. Earnings per share are expected to grow 17.6% over the next 3-5 years. The company raised its 2006 earnings per share guidance in early August. TEVA has a current dividend yield of 0.71% and a five-year average dividend yield of 0.50%. Full Analysis Teva Pharmaceutical Industries Limited is a global pharmaceutical company specializing in the development, production and marketing of generic and proprietary branded pharmaceuticals as well as active pharmaceutical ingredients. Over the past 16 quarters, TEVA beat analysts' earnings expectations on 14 occasions. The company's average margin of surprise over this period of time was 11.2%. Earnings per share grew 32.2% over the past five years. The company is scheduled to release its third-quarter results on Nov 7. On Aug 8, TEVA posted profits of $541 million, or 66 cents per share. With analysts calling for 45 cents, the company topped estimates by 46.7%. Compared to the prior-year period, earnings ballooned 83.3%. Net sales soared 76.4% to $2.17 billion from $1.23 billion in the second quarter of 2005. President and CEO Israel Makov stated, “This was an outstanding and exciting quarter for Teva—a quarter of record-breaking financial results and major strategic achievements.” Makov will retire next year and will be replaced by Shlomo Yanai. In addition to releasing solid results for the second quarter, TEVA upped its 2006 earnings per share guidance to between $2.15 and $2.25 from its previous outlook, which called for profits between $2.02 and $2.15 per share. Earnings per share are forecasted to grow 17.6% over the next 3-5 years. TEVA completed its acquisition of IVAX Corporation on Jan 26, 2006. The company is said to be making remarkable progress on the integration, which is moving along at a record pace. The second quarter was the first full quarter to include IVAX results since the acquisition was finalized. At the beginning of August, TEVA had 148 product applications awaiting final approval from the Food and Drug Administration. The company stated that collectively, the brand products covered by these applications have annual U.S. revenues of roughly $84 billion. The Board of Directors declared a second-quarter cash dividend of 7.7 cents per share. The company has a current dividend yield of 0.71% and a five-year average dividend yield of 0.50%. While the return on equity for the industry sits at a negative 39%, TEVA's is a positive 24%. As the baby boomer generation begins to retire in the coming years, the need for health care should rise dramatically. With health care costs moving higher, coupled with the impeding generic releases of brand-name drugs, generic drug manufacturers should do quite well. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. | Blog Home| VitalStocks Home