Novartis: slightly beats expectations in second-quarter.
(CercleFinance.com) - Swiss drugmaker Novartis on Tuesday maintained its 2017 outlook as it posted second-quarter results that slightly beat expectations.
The group reported a 2% year-on-year fall in second-quarter net sales at 12.4 billion dollars. Growth drivers such as psoriasis drug Cosentyx were offset by generic erosion of chemotherapy Gleevec/Glivec.
Novartis generated core net income of 2.9 billion dollars, down 2% in dollars, over the same period last year. Core EPS was 1.22 dollar.
In a reaction note, analysts at Liberum mention an "encouraging" quarter, with EPS 3% ahead of consensus forecasts, while net sales were 1% better than the consensus.
"From a divisional perspective, the Innovative Medicines business drove the group beat (3% ahead of consensus) while Alcon also enjoyed a better quarter (3% ahead of consensus), although Sandoz had another soft period," the broker said, reiterating its "buy" rating on the stock.
"We are on track for the full year guidance," Novartis chief executive Joseph Jimenez said in a press release.
For 2017, net sales are still expected to be broadly in line with the previous year at constant currencies, while core operating income is expected to be broadly in line, or report a low single digit decline.
The shares opened up 1.1 percent at 81 Swiss francs this morning on the SIX Swiss Exchange.
Copyright (c) 2017 CercleFinance.com. All rights reserved.
The group reported a 2% year-on-year fall in second-quarter net sales at 12.4 billion dollars. Growth drivers such as psoriasis drug Cosentyx were offset by generic erosion of chemotherapy Gleevec/Glivec.
Novartis generated core net income of 2.9 billion dollars, down 2% in dollars, over the same period last year. Core EPS was 1.22 dollar.
In a reaction note, analysts at Liberum mention an "encouraging" quarter, with EPS 3% ahead of consensus forecasts, while net sales were 1% better than the consensus.
"From a divisional perspective, the Innovative Medicines business drove the group beat (3% ahead of consensus) while Alcon also enjoyed a better quarter (3% ahead of consensus), although Sandoz had another soft period," the broker said, reiterating its "buy" rating on the stock.
"We are on track for the full year guidance," Novartis chief executive Joseph Jimenez said in a press release.
For 2017, net sales are still expected to be broadly in line with the previous year at constant currencies, while core operating income is expected to be broadly in line, or report a low single digit decline.
The shares opened up 1.1 percent at 81 Swiss francs this morning on the SIX Swiss Exchange.
Copyright (c) 2017 CercleFinance.com. All rights reserved.