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Novartis hikes full-year guidance as Q1 results exceed estimates, shares pop

Published 23/04/2024, 09:26
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Novartis (NVSEF) shares surged 4.7% in European trading Tuesday after the Swiss pharmaceutical company's release of impressive first-quarter results.

The company reported a core earnings per share (EPS) of $1.80, surpassing the consensus estimate of $1.67. Core operating profit reached $4.54 billion, exceeding expectations of $4.22 billion.

The company's net sales for the quarter were $11.83 billion, which also beat the forecast of $11.43 billion.

In terms of specific product sales, the most notable beats were Cosentyx and Entresto, which outperformed estimates, bringing in $1.33 billion and $1.88 billion, respectively, compared to projections of $1.23 billion and $1.64 billion.

Following these strong results, Novartis has hiked its full-year guidance.

The company now expects net sales to increase by a high single to low double-digit percentage, and adjusted operating income to grow by a low double-digit to mid-teens percentage.

This is an upward revision from its previous forecast, which projected a high single-digit percentage increase in adjusted operating income and mid-single-digit sales growth.

Moreover, Novartis announced that Giovanni Caforio, the former CEO of Bristol Myers Squibb, is slated to be proposed as the Chair of the Board of Directors at the 2025 annual shareholders meeting.

The current Chair, Joerg Reinhardt, will not seek re-election after serving 12 years.

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