Novartis AGNOVN
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Q2 earnings beat estimates and sales returned to growth, surprising analysts who expected a guidance downgrade.
Impact on stocks 1
Biotech & Genomic Medicine
Novartis AGNovartis reported stronger-than-expected second-quarter results, with earnings excluding certain items remaining unchanged at $5.94 billion, beating the $5.34 billion average analyst estimate. Sales also came in above expectations and returned to growth, even as Entresto sales fell 50% due to cheaper generic alternatives entering the market. The company maintained its full-year forecast for sales growth and a low-single-digit decline in core operating profit, surprising some analysts who had expected a guidance upgrade. Newer treatments helped offset the decline, including the chronic skin disease pill Rhapsido, which generated $64 million in quarterly revenue after launching in the US and China. CEO Vas Narasimhan has announced more than $15 billion of acquisitions over the past year to build a new generation of growth medicines, and the company is planning seven new US facilities as part of a broader $23 billion manufacturing expansion.
Novartis AGQ2 earnings beat estimates and sales returned to growth, surprising analysts who expected a guidance downgrade.