:max_bytes(150000):strip_icc()/GettyImages-1913585778-a95afa2d9900440bbcb77c608d5abde6.jpg "Novartis Falls Despite Earnings Beat, Guidance Raise")
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Key Takeaways
- Novartis posted second-quarter net sales and adjusted profit that beat analysts’ expectations.
- The drugmaker upped its full-year core operating income outlook for the second time in as many quarters.
- Novartis now expects fiscal 2024 core operating income to grow by a mid- to high-teen-percentage rate, up from a low-double-digit to mid-teen rate.
Novartis (NVS) American depositary receipts (ADRs) slipped Thursday even though the pharmaceutical giant beat second-quarter earnings expectations and raised its full-year core operating income guidance.
The Swiss firm posted adjusted earnings per share (EPS) of $1.97, which rose 17% year-over-year, and net sales of $12.51 billion, up 9%. Both topped estimates.
Entresto, Cosentyx, Kesimpta Sales Top Estimates
Novartis’ heart failure drug Entresto generated sales of $1.9 billion in the period, while its psoriasis and psoriatic arthritis treatment Cosentyx brought in $1.53 billion, and the multiple sclerosis treatment Kesimpta delivered $799 million. All topped estimates.
“Our performance reflects continued strong momentum of our key growth drivers, both in the U.S. and ex-U.S., which has allowed us to upgrade our FY2024 guidance,” Chief Executive Officer (CEO) Vas Narasimhan said.
Novartis now expects fiscal 2024 core operating income to grow by a mid- to high-teen-percentage rate, up from a low-double-digit to mid-teen rate. This is the second upward revision Novartis has issued in 2024 after the company boosted its outlook in April.
Novartis ADRs slid 3.5% to $107.83 as of 10:13 a.m. ET Thursday. They are up about 7% this year.