Novartis Reports $13.9B Q3 Revenue, Navigates Patent Cliffs with Innovation
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Fool
- Revenue Growth: Novartis reported a Q3 revenue increase of 8% year-over-year to $13.9 billion, demonstrating resilience and sustained growth despite the challenges posed by the patent expiration of Entresto.
- Earnings Improvement: The earnings per share reached $2.25, reflecting a 9% increase from the previous year, showcasing the company's success in maintaining profitability amid generic competition.
- Product Diversification: With 10 products generating over $1 billion in sales, Novartis's pipeline includes the newly approved Fabhalta for a rare blood disease, enhancing its ability to navigate future patent cliffs.
- Dividend Stability: Novartis has increased its dividends for 28 consecutive years, currently offering a 3% yield, which is significantly higher than the S&P 500's average of 1.2%, indicating strong cash flow and profitability even during economic downturns.
NVS
$136.06+Infinity%1D
Analyst Views on NVS
Wall Street analysts forecast NVS stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for NVS is 129.00 USD with a low forecast of 118.00 USD and a high forecast of 140.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
2 Analyst Rating
0 Buy
1 Hold
1 Sell
Moderate Sell
Current: 135.270
Low
118.00
Averages
129.00
High
140.00
Current: 135.270
Low
118.00
Averages
129.00
High
140.00
About NVS
Novartis AG is a Switzerland-based pharmaceutical company. The Company develops, manufactures, and markets branded and generic prescription drugs, active pharmaceutical ingredients (APIs), biosimilars and ophthalmic products. The Company uses science and digital technologies for treatments in the disease areas of immunology, dermatology, cancer, ophthalmology, neuroscience, respiratory, cardiovascular, renal and metabolism. The business activities of the Company are divided into two segments: Innovative Medicines, which includes innovative patent-protected prescription medicines for blood pressure, cancer and other ailments, and Sandoz, which includes generic pharmaceuticals and biosimilars.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
