Sanofi Reports Q4 Loss but Projects Profitable Growth Ahead
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 10h ago
0mins
Source: NASDAQ.COM
- Financial Performance: Sanofi reported a net loss of €801 million in Q4, contrasting with a profit of €499 million a year ago, indicating a significant decline in profitability despite a 7% increase in net sales to €11.3 billion.
- Earnings Outlook: For 2026, Sanofi projects sales growth in the high single digits, with business EPS expected to grow slightly faster than sales, reflecting the company's confidence in sustaining profitable growth.
- Shareholder Returns: The Board proposed a dividend of €4.12 per share for 2025, a 5.1% increase from last year, pending shareholder approval at the 2026 AGM, demonstrating the company's ongoing commitment to returning value to shareholders.
- Share Buyback Plan: Sanofi intends to execute a €1 billion share buyback program in 2026, aimed at enhancing shareholder value and boosting market confidence, despite current financial challenges.
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Analyst Views on SNY
Wall Street analysts forecast SNY stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for SNY is 78.52 USD with a low forecast of 57.00 USD and a high forecast of 116.57 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.
5 Analyst Rating
2 Buy
3 Hold
0 Sell
Moderate Buy
Current: 45.770
Low
57.00
Averages
78.52
High
116.57
Current: 45.770
Low
57.00
Averages
78.52
High
116.57
About SNY
Sanofi SA is a France-based healthcare company based in France. The Company focuses on patient needs and engages in the research, development, manufacture, and marketing of therapeutic solutions. Its three operating segments are: Pharmaceuticals, Consumer Healthcare (CHC), and Vaccines. The Pharmaceuticals includes: Immunology, Multiple Sclerosis / Neurology, Oncology, Rare Diseases, Rare Blood Disorders, Cardiovascular, Diabetes, Established Prescription Products. The Vaccines segment comprises, for all geographical territories, the commercial operations of Sanofi Pasteur, together with research, development, and production activities dedicated to vaccines. The CHC segment comprises the commercial operations for Sanofi’s Consumer Healthcare products, together with research, development and production activities dedicated to those products. The Company’s products developed in collaboration or franchise include Dupixent, Aubagio, Lemtrada, Cerezyme, Lumizyme, Jevtana, Fabrazyme.
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.
Sanofi to Announce Q4 Earnings on January 29
- Earnings Announcement Date: Sanofi is set to release its Q4 2023 earnings report on January 29 before market open, with analysts expecting a normalized EPS of €1.47 and revenue of €11.12 billion, indicating stability in the company's financial performance.
- Market Expectation Analysis: The analysts' expectations reflect Sanofi's competitiveness in the pharmaceutical industry, particularly against the backdrop of new product launches and growing market demand, which is likely to positively impact the company's stock price.
- Clinical Progress Focus: In its year-end late-stage pipeline review, Sanofi highlighted clinical and regulatory developments, notably the approval of Dupixent for children with asthma in Japan in collaboration with Regeneron, further solidifying its market position in respiratory diseases.
- Investor Conference Participation: Sanofi will present at the 44th Annual J.P. Morgan Healthcare Conference, which is expected to attract investor attention and bolster market confidence in its future growth potential.
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Sanofi's Q4 Sales Miss Expectations Despite Growth
- Sales Growth: Sanofi reported Q4 sales of $13.159 billion (11.3 billion euros), a 7% year-over-year increase, yet fell short of the consensus estimate of $13.41 billion, indicating intensified market competition pressures.
- Strong Dupixent Performance: Dupixent sales surged by 32.2% to 4.2 billion euros, driving overall performance, although the company anticipates future sales challenges due to impending patent expirations.
- Vaccine Sales Decline: Vaccine sales decreased by 2.5% to 2 billion euros, primarily due to lower sales of Beyfortus and PPH vaccines, reflecting changing market demand and declining birth rates.
- Future Outlook: Sanofi expects sales to grow at a high single-digit percentage in 2026 and plans to execute a 1 billion euro share buyback program to enhance shareholder returns and market confidence.
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