Shares of healthcare major Novartis AG (NYSE:NVS) are up nearly 4% at the time of writing today after the company posted better-than-anticipated second-quarter numbers while also boosting its outlook.
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Revenue rose 6.6% year-over-year to $13.62 billion, outperforming estimates by $410 million. EPS at $1.83 too landed past expectations by $0.07. During the quarter, Entresto, Kesimpta, Pluvicto, and Kisquali continued to perform well with sales in the Innovative Medicines segment rising ~9% and Sandoz segment sales rising ~5%. Further, the growth in the top line, coupled with lower restructuring charges, helped Novartis boost its operating income by nearly 50% during this period.
What’s more, the company has also initiated a share repurchase program of nearly $15 billion. The stock buyback is expected to be completed by the end of 2025. Novartis Board has also given its blessing to the planned 100% spin-off of Sandoz. The strategic move is expected to be completed by the fourth quarter.
Buoyed by the robust business momentum, Novartis now expects full-year 2023 sales to rise by a high single-digit versus an earlier expectation of mid-single-digit growth. Core operating income for the year is seen growing in the low double digits as compared to the prior outlook of high single-digit growth.
Overall, the Street has a $118.50 consensus price target on Novartis alongside a Moderate Buy consensus rating. Shares of the company have gained nearly 19.6% over the past year.
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