Novartis (NYSE:NVS) shares are trending nearly 3% lower in the early session today after the pharmaceutical company’s fourth-quarter results failed to impress investors. Despite rising by 8% year-over-year, revenue of $11.42 billion lagged expectations by $460 million. In sync, EPS of $1.53 came in lower than estimates by $0.12.
For the full year, net sales rose by 8%, and operating income increased by 23%. In Q4, the company’s sales growth was primarily driven by double-digit gains in Entresto, Kisqali, Kesimpta, and Pluvicto.
Following the spin-off of the Sandoz business, Novartis has transformed itself into a “Pure play innovative medicines business.” The company is now focused on the four core therapeutic areas of cardiovascular-renal-metabolic, immunology, neuroscience, and oncology. For Fiscal Year 2024, Novartis foresees net sales growth in the mid-single-digits. Further, core operating income is seen rising in the high-single-digits.
Novartis is also increasing its dividend by 3.1% to CHF 3.30 per share. A shareholder vote on the proposed dividend increase is slated for March 5.
Is NVS Stock a Good Buy?
Overall, the Street has a Moderate Buy consensus rating on Novartis, and the average NVS price target of $118.50 implies a nearly 10% potential upside in the stock. That’s after a nearly 20% rise in the company’s share price over the past year.
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